U.S. grains: Wheat extends climb on tight U.S. supply

CBOT soy down; corn and oats up

CBOT December 2021 wheat (candlesticks) with 20-day moving average (yellow line) and MGEX December 2021 spring wheat (dark green line, left column). (Barchart)

Chicago | Reuters — U.S. wheat futures hit a six-week high on Friday, rallying for a second day in a row on smaller-than-expected stocks and production figures from the U.S. Department of Agriculture.

Corn futures followed wheat higher while soybeans fell to multi-month lows after USDA on Thursday reported larger-than-expected U.S. soy inventories.

Chicago Board of Trade December wheat settled up 29-3/4 cents at $7.55-1/4 per bushel after reaching $7.58-1/2, its highest since Aug. 17 (all figures US$).

CBOT December corn ended up 4-3/4 cents at $5.41-1/2 a bushel while November soybeans fell 9-1/2 cents to finish at $12.46-1/2 a bushel after dipping to $12.42, the lowest in a continuous chart of the most-active soy contract since Dec. 22.

CBOT December oats ended up 8-3/4 cents at $5.91 a bushel after touching $5.95, the highest spot price since 2014, on tight supplies due to drought in top exporter Canada.

Wheat was the day’s biggest mover, with December futures up about four per cent after USDA on Thursday reported U.S. Sept. 1 wheat stocks at a 14-year low and also cut its estimate of the 2021 U.S. wheat harvest more than most analysts had expected.

“Wheat is going to be in very tight supply and could be the (futures market) leader in the winter and spring, until we get a new cycle of crops that could be available for export,” said Craig Turner, senior ag broker at Daniels Trading.

In Europe, benchmark December wheat on Euronext rose as much as 2.5 per cent to a contract high of 264.50 euros (C$387.98) a tonne, as the U.S. supply data added to support from a weaker euro and brisk export demand for European wheat, traders said.

Soybean futures fell on a larger-than-expected soy stocks figure from Thursday’s reports, along with pressure from the ongoing U.S. harvest.

USDA reported Sept. 1 soybean stocks at 256 million bushels, above the entire range of trade estimates in the Reuters pre-report poll.

“Soybeans are not nearly as tight as we thought,” Turner said.

After Friday’s CBOT close, USDA said U.S. processors crushed 168.2 million bushels of soybeans in August, below an average of trade estimates for 169 million.

Meanwhile, commodity brokerage StoneX raised its forecast of Brazil’s 2021-22 soybean crop to 144.26 million tonnes, from 143.33 million previously.

— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra.

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