Wheat and corn extend gains in Chicago on Thursday

Wheat and corn futures continued to rise in the U.S. market on Thursday, August 20, while soybeans closed mixed. September Chicago SRW wheat futures gained 0.37% to $250.86/t, corn rose 1.22% to $188.48/t, while November soybeans edged 0.06% lower to $454.33/t.

Wheat continues to be supported by disruptions to Black Sea supplies. Exports from Ukraine and via Novorossiysk have effectively stalled, while lost wheat shipments from the region since mid-July are estimated at around 4 mln tons. A tighter global balance provided additional support, with the IGC cutting its global wheat production forecast by 4 mln tons to 817 mln tons and stocks by the same amount to 275 mln tons.

Corn was supported by results from the U.S. ProFarmer Crop Tour. Average yield in Illinois was estimated at 184.19 bushels per acre, down 7.7% from last year and 7.5% below the three-year average. The IGC also lowered its global corn production forecast by 1 mln tons to 1.305 bln tons.

In the oilseed market, attention remains focused on strong Chinese demand for new-crop U.S. soybeans. Weekly U.S. soybean sales reached 1.723 mln tons, with China purchasing 1.131 mln tons. ProFarmer estimated soybean pod counts in Illinois at 3.3% below last year, although they were 2.93% above the three-year average. November canola futures on ICE were virtually unchanged at CAD 820.4/t, up 0.06%.

European grain markets also strengthened. On MATIF, December wheat climbed to €241/t, its highest level since July 24, while November corn rose to €262.75/t. Grain markets continue to receive support from Black Sea supply disruptions and concerns over the global supply outlook, while strong Chinese demand for the new U.S. crop remains one of the key drivers for the soybean market.

Tags: Chicago, corn, prices, soybean, wheat, futures