(Bloomberg) -- Wheat rose for a second session on concerns that poor weather across major exporting countries will crimp production and tighten supply.
Trade group Coceral has cut its forecast for the 2024 harvest from the UK and European Union, while dry weather led to an industry group in Western Australia to reducing its outlook for the state’s wheat crop. Parched fields in the key Black Sea region are also threatening plantings for next year’s harvest.
The wheat market is supported by hot and dry conditions in Ukraine and Russia, said Patrick Boova, director of International Agribusiness Group LLC. “Russian wheat needs to be planted by the end of October. In this year’s case, seeding and early development is well off the average pace,” he said.
Soybeans advanced on Monday — also on dry conditions — but prices have traded in a narrow range this month as weather woes in Brazil are tempered by prospects for a bumper crop from the US.
A slowdown in Chinese demand due to its deepening economic crisis could cap further price gains for row crops. In August, shipments of wheat and corn to the world’s biggest grains importer tumbled from the previous month.
Corn futures on the Dalian Commodity Exchange fell as much as 2.7% on Monday, the biggest intraday loss in over a year. The market is now supplied with both the old and new crop, according to a note from Guangda Futures on Monday, with end-users pausing buying amid general demand weakness.
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