Indianapolis | Reuters — Chicago Board of Trade wheat climbed on Thursday, supported by a weaker dollar and continued uncertainty as Ukraine attempts to move grain exports through the Black Sea.
Corn and soybeans firmed as hot, dry weather across the U.S. Midwest threatened to stress recently-planted crops.
The most-active wheat contract of the Chicago Board of Trade (CBOT) settled 28-1/4 cents higher at $10.78-1/4 a bushel (all figures US$).
CBOT corn firmed 14-1/4 cents to $7.88-1/4 a bushel while soybeans gained 15-3/4 cents to settle at $17.09-1/2 a bushel.
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Intense heat across much of the U.S. Midwest could stress still-unharvested winter wheat crops, while prolonged dryness and record temperatures threaten corn and soybeans ahead of key development stages later this summer.
“At this point, the high temperatures are not really damaging the crop,” said Chuck Shelby, president of Risk Management Commodities. “As you move into that July time window, that’s going to be the critical month. Heat and dryness will probably impact the yield.”
Ukrainian exports remain uncertain as Russia offered “safe passage” for grain shipments from Black Sea ports, though Ukraine is reticent to remove sea mines, seen as a protection against Russian attacks.
A falling U.S. dollar index after the U.S. Federal Reserve raised interest rates on Wednesday is supporting wheat as a lower dollar makes U.S. exports more competitive globally.
“There’s a lot of uncertainty on whether Ukraine will get their grain out of Black Sea ports. You have the dollar down,” said Terry Reilly, senior agriculture futures analyst at Futures International. “That’s helping big time.”
Soybeans gains were limited as Indonesia continues to allow more exports after a cap earlier in the year.
— Reporting for Reuters by Christopher Walljasper; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
