Chicago | Reuters — Chicago Board of Trade wheat futures ended lower on Monday after rising earlier to their highest level in more than two weeks on hopes for global demand.
Corn futures also eased as traders monitored the U.S. harvest, while gains in soyoil futures helped lift the soybean market, analysts said.
After trading ended, the U.S. government reported that farmers have harvested 45 per cent of the U.S. corn crop and 62 per cent of soybeans. Analysts expected harvesting to be 46 per cent complete for corn and 57 per cent complete for soybeans.
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Traders also monitored fierce fighting between Israel and Hamas, with some stepping back from the markets due to uncertainty about the conflict.
“That’s keeping trader enthusiasm down,” said Jim Gerlach, president of A/C Trading in Indiana.
The most-active CBOT wheat contract finished down 2-1/2 cents at $5.77-1/4 a bushel (all figures US$). The contract earlier reached its highest price since Sept. 27 at $5.88-1/2, extending a rebound from a three-year low hit last month.
The strongest U.S. weekly export sales in more than a year and a second rare sale of soft red winter wheat to China boosted prices late last week.
“China has bought some U.S. wheat and there are expectations of more deals,” a Singapore-based trader said. “Lower-quality U.S. wheat is competitive in the market.”
Still, competition for global export business from Black Sea origins remains strong, consultancy Agritel said in a note. Russia’s IKAR agriculture consultancy raised slightly its forecasts for the country’s overall grain production and exports this season.
CBOT corn settled 3-1/4 cents lower at $4.90 a bushel, while soybeans rose six cents to $12.86-1/4 a bushel. December soyoil climbed 1.52 cent to 55.9 cents/lb.
The National Oilseed Processors Association (NOPA) said the U.S. soybean crush jumped last month to the highest-ever level for September, while end-of-month soyoil stocks thinned to the lowest in nearly nine years.
— Reporting by Tom Polansek in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
