By Tom Polansek
CHICAGO, Aug 16 (Reuters) – Chicago Board of Commerce wheat futures took a breather on Monday after setting 8-1/2-year highs final week on issues about tightening provides in exporting nations hit by harsh climate.
Russian agriculture consultancy Sovecon trimmed its forecast for Russia’s crop by 0.3% from final week within the newest estimated discount for the world’s greatest wheat exporter.
The U.S. Division of Agriculture on Thursday slashed its forecasts for harvests in Russia, Canada and america, igniting a worth rally.
Russia’s declining output and better costs have caught quick worldwide buying and selling firms that bought wheat and different crops to Asian millers on expectations of bumper international provides, three Singapore-based merchants advised Reuters.
In Europe, France’s smooth wheat harvest confirmed uneven take a look at weights, a key measure of milling high quality, after rains, based on farm workplace FranceAgriMer.
“There’s concern in a number of main areas about each wheat crop sizes and high quality, with tighter than anticipated international wheat provides now being typically accepted,” stated Matt Ammermann, StoneX commodity danger supervisor.
Most-active CBOT wheat futures Wv1 have been down 1-3/Four cents at $7.60-1/2 a bushel at 10:15 a.m. CDT (1515 GMT). On Friday, the market hit a February 2013 excessive of $7.74-3/4.
European Euronext wheat futures BL2Z1 rose on Monday, after hitting their highest stage since December 2012 on Friday. GRA/EU
CBOT soybeans Sv1 have been up 3-1/Four cents at $13.68-1/Four a bushel. Corn Cv1 fell 5 cents to $5.68 a bushel.
The USDA stated exporters bought 132,000 tonnes of U.S. soy to unknown locations, the newest in a string of current gross sales.
Merchants are looking forward to outcomes from the Professional Farmer Midwest Crop Tour this week, after dryness damage some rising areas.
The USDA final week made a bigger-than-expected minimize to its U.S. corn harvest estimate.
“Search for continued volatility as merchants resolve how they wish to play the climate forecasts and react to the Professional Farmer tour,” stated Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
(Reporting by Tom Polansek in Chicago and Michael Hogan in Hamburg Further reporting by Naveen Thukral in Singapore Enhancing by Barbara Lewis and Matthew Lewis)
(([email protected]; https://twitter.com/tpolansek))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.