Winnipeg | Reuters — Chicago wheat rose for a second straight session on Wednesday, supported by end-of-the-month short-covering and investor hopes that China will loosen COVID-19 rules, although the grain declined sharply in November on competition from Black Sea supplies.
Soybeans also ticked up, touching a two-month peak, as optimism that China will ease restrictions that have triggered rare public protests boosted expectations for demand in the massive commodity importer.
U.S. exporters sold 136,000 tonnes of soybeans for delivery to China during 2022-23, the U.S. Department of Agriculture said.
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The most-active wheat contract on the Chicago Board of Trade (CBOT) climbed 1.8 per cent to settle at $7.95-1/2 per bushel (all figures US$).
“What we’re seeing in wheat more than anything is month-end position squaring,” said Agrivisor market analyst Karl Setzer, adding that Chicago wheat looked technically oversold.
Concerns about dry conditions harming U.S. and Argentine wheat crops are mostly offset by a bumper Canadian harvest and improving Australian crop, Setzer said.
The U.S. Department of Agriculture, in its last weekly crop progress report for 2022, on Tuesday rated 34 per cent of U.S. winter wheat in good to excellent condition, up two percentage points from the previous week but still the weakest score for this time of year in a decade.
CBOT soybeans settled up 0.7 per cent to $14.69-1/2 per bushel.
Corn dipped 0.4 per cent to settle at $6.67 per bushel on concerns about export demand and weighed down by profit-taking by funds holding long positions, Setzer said.
For the month, wheat lost 9.8 per cent, soybeans added 3.5 per cent and corn lost 3.5 per cent.
Guangzhou on Wednesday relaxed COVID prevention rules in several districts, a move that followed protests in the southern Chinese city.
Cheap supplies from Russia and elsewhere in the Black Sea region were keeping a lid on wheat futures by maintaining competition for U.S. exports.
— Reporting for Reuters by Rod Nickel in Winnipeg, Gus Trompiz in Paris and Naveen Thukral in Singapore.
