U.S. grains: Wheat sets 10-month high on deteriorating Russian harvest prospects

Chicago Board of Trade wheat futures climbed to a 10-month peak on Wednesday as worries grew about deteriorating harvest prospects in top exporter Russia, before the market turned lower.

Concerns about declining global supplies sent the benchmark CBOT wheat Wv1 contract soaring to a premium of $2.39-1/2 per bushel over corn Cv1 futures this week, the largest since Oct. 10, 2022.

The wide spread is expected to boost demand for U.S. corn for livestock feed, analysts said. The spread narrowed on Wednesday as corn futures rose and wheat back-pedalled.

“Wheat’s been the lead for sure, and it’s been dragging corn right along with it,” said Jim Gerspach, president of A/C Trading.

CBOT most-active wheat Wv1 ended the day down 4-1/2 cents to $6.93 per bushel.The contract earlier reached $7.16-3/4, its highest since July 28.

Traders kept their attention on Russia, where rains may provide relief from dryness in the next 11 to 15 days, according to an analyst note.

In Ukraine, crops have also faced dryness and frosts. A state weather forecaster said frosts had not significantly damaged crops but traders are wary after consultants APK-Inform on Monday warned of yield losses.

In the U.S., faster-than-expected corn and soy planting progress curbed market gains. Windows of dry weather, interspersed with rain in the Midwest, are expected to provide time for planting, analysts said.

Rains have slowed progress in some places.

“Planting delays are something the market is taking note of,” said Brian Basting, analyst at Advance Trading.

CBOT most-active soybean futures Sv1 closed 10 cents higher at $12.46-1/4 per bushel and CBOT corn Cv1 rose 3-1/4 cents to end at $4.61-1/4 per bushel.

Tags: futures, demand, Ukraine, harvest, corn, soybeans, wheat, U.S.