Chicago | Reuters — Chicago wheat futures closed higher on Friday, boosted by a weaker U.S. dollar, after hitting a 20-month low, while corn futures rose from a seven-month low.
The markets recovered after a week that saw expectations for an extended Black Sea export deal and a lower U.S. government estimate for corn export demand, coupled with forecasts that El Nino will boost U.S. crops.
The weaker dollar tends to make U.S. grains more competitive globally.
The most active wheat contract on the Chicago Board of Trade (CBOT) touched its lowest price since July 2021. The benchmark May soft red winter wheat contract rose 13-1/2 cents to settle at $6.79-1/4 a bushel (all figures US$).
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Corn closed 5-3/4 cents higher at $6.17-1/4 a bushel. The contract touched $6.06-3/4 during the session, the lowest level since August.
The benchmark May soybean futures contract settled down 3-3/4 cents at $15.07 a bushel.
The wheat market has lost about 15 per cent in the last four weeks, soybeans have given up some 2.5 per cent over the same period while corn is down about 10 per cent.
The U.S. government weather forecaster said on Thursday that El Niño could possibly form during summer 2023 and persist through the fall, brightening U.S. crop outlooks.
The markets continue to wait for signs the wartime grain corridor from Ukraine will be extended beyond this month, increasing available global supplies. The U.S. and European wheat markets have been under pressure from Russian export competition.
“The overall tone of the markets remains negative, primarily due to the fact that Russia keeps offering it to the world market at cheap prices,” said Jack Scoville, market analyst at The Price Futures Group. “That keeps the demand away from us.”
A top U.N. trade official will meet senior Russian officials in Geneva next week to discuss extending the deal. However, Russia on Thursday said the deal to ensure safe exports of grain from Ukraine’s Black Sea ports was only being “half-implemented,” raising doubts about whether it would allow an extension.
— Reporting for Reuters by Cassandra Garrison, Julie Ingwersen and Naveen Thukral.
