Chicago wheat futures ticked up on Wednesday, with the market steadying after dropping for the past seven sessions during which it touched its lowest since January due to pressure from record global inventories.
Soybean prices climbed for the first time in six sessions to edge away from their lowest in almost a month, although gains were checked by improved weather in parched areas of Argentina.
The most-active Chicago Board of Trade wheat contract had gained 0.6 percent to $4.13-1/4 a bushel by 0339 GMT, after dropping on Tuesday to its lowest since Jan. 4 at $4.10-1/2 a bushel.
Soybeans rose 0.3 percent to $9.79 a bushel, after hitting their lowest since Nov. 17 at $9.75 a bushel. Corn advanced 0.3 percent to $3.48-3/4 a bushel.
“It is just a bit of bargain-buying that is supporting wheat prices, there is no catalyst in the near term to lift prices,” said an India-based agricultural commodities analyst at an international bank.
“It is too early to talk about the U.S. weather, and U.S. exports continue to be challenged by Russian and other Black Sea exporters.”
Underscoring stiff export competition, top global wheat importer Egypt bought 295,000 tonnes of Russian and Romanian wheat in a tender to which no U.S. wheat had been offered.
Soybean prices came under pressure from expectations for rain this weekend in dry areas of Argentina, the world’s top soymeal exporter and the No.3 corn supplier.
Brazilian government food supply agency Conab forecast the country’s 2017/18 soybean crop at 109.2 million tonnes, topping its month-ago range of estimates for 106.4 million to 108.6 million tonnes.
Abiove, a Brazilian oilseed processors association, raised its crop estimate to 109.5 million tonnes, from 108.8 million previously.
The USDA raised its forecast of U.S. 2017/18 soybean ending stocks to 445 million bushels, from 425 million last month, after cutting its U.S. soy export forecast due to strong competition from South American producers.
Commodity funds were net sellers of CBOT soybean, corn, soymeal and wheat futures contracts on Tuesday and net buyers of soyoil futures, traders said.