Chicago wheat futures rose on Wednesday, extending gains from the previous session, after top exporter Russia trimmed its harvest and export forecasts, but gains were limited by ample global supply.

Soybean futures climbed following a decline in U.S. crop ratings and hopes that trade deals may boost demand for U.S. exports.

Corn rose slightly, clawing back some of Tuesday’s losses, but forecasts for crop-friendly rain in U.S. grain belts and plentiful supply weighed.

The most active wheat contract on the Chicago Board of Trade (CBOT) rose 0.3% to $5.51 a bushel by 0609 GMT.

Prices climbed 1.3% to their highest in a week-and-a-half on Tuesday but are still not far from May’s five-year low of $5.06-1/4.

Russia’s agriculture minister said the country would produce 88 million-90 million metric tons of wheat this year, versus the previous forecast of 90 million tons, and export 43 million-44 million tons in the 2025-26 season, down from the earlier estimate of 45 million tons.

Despite the downgrade, it will still be a large harvest by historical standards, and the new crop is beginning to reach the market.

“Around the world, crops are in overall good shape,” said Rabobank analyst Stefan Vogel, adding that plentiful supply would likely lead to bigger end-of-season inventories in several wheat-exporting nations.

“The U.S. corn crop is hanging over the market as well,” he said, because low corn prices would weigh on wheat. “If that U.S. crop doesn’t disappoint, I think we’re going to see prices trend a bit lower.”

Meanwhile, France’s soft wheat crop is expected to bounce back from year-ago lows, while India’s wheat inventories rose to a four-year high this month.

A U.S.-Japan trade deal and U.S.-China talks next week are adding to hopes that President Donald Trump will get foreign buyers to step up U.S. farm goods purchases.

CBOT soybeans added 0.4% to $10.30 a bushel and corn rose 0.2% to $4.18-3/4 a bushel.
Source: Reuters