U.S. wheat rises on forecast for reduced Russian production
U.S. wheat futures bounced off nearly two-month lows on Monday following forecasts for reduced Russian production in the 2024-25 marketing year.
Prolonged hot and dry weather in Russia is reducing the expected output from the world's leading wheat exporter, in a turnaround in focus from Friday's Acreage and Quarterly Stock reports from the U.S., which showed potentially larger crops than expected by traders and analysts.
"The wheat buying interest is based on acute heat/dryness across the Black Sea and southeastern Europe, where spring crops find themselves in a deepening drought cycle with another round of intense heat forecast into mid-July," AgResource said, according to Dow Jones.
On the Chicago Board of Trade, wheat for September delivery (W_1:COM) ended +2.8% to $5.89 1/4 per bushel, while November soybeans (S_1:COM) settled +0.7% to $11.11 1/4 per bushel, and December corn (C_1:COM) closed +0.2% to $4.21 1/2 per bushel.
ETFs: (NYSEARCA:WEAT), (NYSEARCA:SOYB), (NYSEARCA:CORN), (DBA), (MOO)
Mexico's incoming agriculture minister Julio Berdegue told Reuters on Monday that the government will drop plans to phase out imports of genetically modified yellow corn and instead seek to maintain self-sufficiency in white corn, which is used for making tortillas.
The news helped lift U.S. corn futures late in the session on the potential for improved corn export sales.
Mexico's proposed ban on GM corn, which was later limited to corn for human consumption, had sparked a trade dispute with the U.S.