CEREALS-Wheat prices rise due to export demand; corn, soy are also climbing

Band Nigel Hunt

LONDON, July 15 (Reuters)Chicago wheat futures rose on Friday, boosted by strong export sales as the recent price drop led to a pick-up in demand in the physical market.

Chicago Board of Trade (CBOT) most active wheat contract Wv1 added 0.5% to $7.98-3/4 a bushel, 11:00 GMT.

U.S. wheat exports in the week ended July 7 totaled more than one million tonnes, U.S. government data showed Thursday, the biggest weekly tally since March 2020.

“Chicago wheat is still supported by the huge export sales reported for US wheat on Thursday, including to China which had been rumored,” a trader said.

“The fall in prices this month to pre-war levels in Ukraine has sparked more interest from importers, with the Philippines buying today after steady purchases of wheat by other countries this week.” GRA/SOFT

Wheat was also supported by dry weather in Europe.

The consultancy firm Strategie Grains has revised downwards its forecast for this year’s cereal harvest in the European Union.

The EU wheat harvest was expected at 123.3 million tonnes, down from the 124.4 million forecast in June and below the revised 129.9 million tonnes harvested last year, it said. he stated in a monthly report.

Corn prices also rose with the most active contract CV1 climbing 1% to $6.07-1/4 a bushel as soybeans Sv1 were 0.4% higher at $13.45-1/2 a bushel.

“Corn is supported today by forecasts of hot, dry weather across the U.S. Midwest in the coming days, which is not welcome for corn. This will create concerns for corn yields,” said another trader.

“Markets are starting to put more weight on weather in US corn prices,” the trader added.

Soybeans rose more modestly although the weather outlook provided some support.

“The impact is less clear (for soybeans) than for corn because August is the most important month for crop development in the United States,” the trader said.

(Additional reporting by Naveen Thukral in Singapore and Michael Hogan in Hamburg; Editing by Rashmi Aich and Anil D’Silva)

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