BEIJING- Chicago corn, soybean and wheat futures gained on Thursday after a two-session slide, as Russia declared a state of emergency in key grain-growing regions due to frosts and Argentina corn crop estimates were lowered due to leafhopper plague.
Expectation that the US Department of Agriculture’s (USDA) May supply and demand and crop production reports due today will show adequate supply limited the rebound.
There have been some bullish developments to spark short-covering that has driven the gains, but a USDA report due at the end of the week is expected to show a comfortable supply outlook in the US and globally, Bergman Grains Research said.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.24 percent at $6.35-4/8 a bushel.
Corn gained 0.38 percent to $4.60 a bushel, while soybeans rose 0.47 percent to $12.33-4/8 a bushel.
Three of Russia’s key grain-growing areas declared a state of emergency on Wednesday, citing May frosts that have caused severe damage to crops and will reduce this year’s harvest.
Argentina’s Rosario grains exchange said the leafhopper plague has ruined around 20 percent of the corn crop this season, while cutting its harvest estimate for 2023/24 to 47.5 million metric tons from 50 million tons.
The exchange also held its estimate for the current soybean harvest at 50.0 million tons, though it cautioned harvesting has been delayed by rains and high humidity.
Brazil will remain a competitive corn supplier in global markets thanks to yet another year of abundant production but will not maintain its position as the world’s largest exporter, Paulo Sousa, chief executive of grain trader Cargill in the country, said.
