Chicago wheat lower on harvest pressure; soybeans firm
SINGAPORE: Chicago wheat slid for a second session on Tuesday, with prices close to a one-week low on pressure from the Northern Hemisphere harvest and a forecast of higher output in top exporter Russia. Soybeans edged higher as talks between China, the world's No. 1 importer of the oilseed, and the United States, the second largest exporter, got underway to resolve their trade dispute that has hit farm trade.
'We prices are pulling back after last week's gains,' said a trader in Singapore. 'Harvest has started in some key exporting countries which is putting pressure on prices as supplies going to increase.' The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.4% to $5.40 a bushel, as of 0209 GMT, after hitting its lowest since June 4 earlier in the session. Corn fell 0.1% to $4.33-1/4 a bushel, while soybeans added 0.5% to $10.61-1/4 a bushel.
Wheat futures face headwinds as the winter wheat harvest got under way and the market paused after last week's bounce. There was additional pressure on the wheat market after Russian agricultural consultancy Sovecon raised its forecast for 2025 wheat harvest by 1.8 million metric tons to 82.8 million tons, citing good weather. However, the US harvest is off to a slow start. After the CBOT closed on Monday, the US Department of Agriculture (USDA) said winter wheat was 4% harvested, up just a percentage point from the previous week, lagging the five-year average of 7%.
The USDA rated 71% of the country's corn crop in good to excellent condition as of Sunday, up from 69% the week prior and slightly above the average estimate from a Reuters survey of analysts. The agency pegged 68% of the soybean crop in good to excellent condition, a slight improvement from the previous week and in line with expectations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Energy stocks keep FTSE 100 steady as trade deal optimism wanes
London's FTSE 100 was slightly lower on Thursday as recent optimism around the U.S.-China trade deal waned, but gains in heavyweight energy stocks and some companies limited declines. The benchmark FTSE 100 was flat as of 0901 GMT, after coming within touching distance of an intraday record high. Mid-caps were down 0.6%. U.S. President Donald Trump said on Wednesday that he was willing to extend a July 8 deadline for completing trade talks with countries, but it was not likely necessary as the U.S. would specify the terms of deals in a week or so. The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but failed to impress investors. Risk assets sold off globally, with stocks lower in Asia and Europe. The main U.S. stock index futures were also down over 0.4% each. Geopolitical tensions also added to the cautious mood after Trump pulled some personnel from the Middle east amid mounting tensions with Iran. However, the FTSE 100 managed to outperform peers as heavyweight energy stocks gained 1.4%. Shell and BP were the biggest boosts to the index. Some corporate news also helped, with personal care stocks up 0.9%, powered by a 2.3% gain in Tesco after the food retailer's UK sales growth accelerated in the first quarter. Health and safety device maker Halma gained 4.1% after its annual adjusted pretax profit beat expectations. Worries around UK-U.S. trade tensions were also lower as the country is the only one to have signed a trade deal with the U.S. after Trump's scathing tariffs shook up global financial markets. Meanwhile, data showed that the British economy shrank more-than-expected, the biggest monthly drop since October 2023. Among other stocks, Intermediate Capital Group and JD Sports lost 4% and 2.8%, respectively, as they traded without entitlement to their latest dividend payout.
Business Recorder
3 hours ago
- Business Recorder
Ugandan shilling flat ahead of budget reading
KAMPALA: The Ugandan shilling was flat on Thursday data from the London Stock Exchange Group showed, ahead of the finance minister reading the 2025/26 (July-June) budget later in the day. Ugandan shilling firms on commodity dollar inflows At 0805 GMT, commercial banks quoted the shilling at 3,581/3,591, the same level as Wednesday's close.
Business Recorder
4 hours ago
- Business Recorder
European shares tumble as trade, geopolitical tensions mount
European shares dropped on Thursday, in their fourth straight session of declines, as trade optimism stemming from U.S.-China trade talks faded, while mounting geopolitical tensions led to the markets being more cautious. The pan-European STOXX 600 was down 0.4% at 549.41 points at 0707 GMT, while most regional bourses were also in the red. U.S. President Donald Trump said on Wednesday that he was willing to extend the deadline for trade talks but it was not likely necessary as the U.S. will send offer letters to countries in a week or so. However, markets were a little concerned about the European Union being able to clinch a deal before Trump's July 8 deadline - when the tariff pause expires. Geopolitical worries added more caution to markets already navigating U.S. tariff-driven uncertainty after trade talks with China did not offer a solution to de-escalate longstanding tensions. European shares slip as markets unfazed by US-China deal U.S. personnel were being moved out of the Middle East because 'it could be a dangerous place' amid rising tensions with Iran, Trump said on Wednesday. In the market, travel and leisure stocks were the worst hit, down 1.7%, while industrial miners fell 1.1%. Among stocks, BE Semiconductor Industries (BESI) jumped 7.7% after raising its long-term financial targets ahead of its investor day. Tesco gained 1.3% after Britain's biggest food retailer's domestic sales growth accelerated in its first quarter.
