MUMBAI – US wheat futures boosted gains on Tuesday, supported by a slowdown in spring wheat planting and concerns over winter crop yields in the United States, while output concerns in major producer Brazil eased after a slight snowfall.
The most active wheat contract on the Chicago Board of Trade (CBOT) rose 0.21% to 48 11.92-1 / 2 a bushel at 0348 GMT.
As supply of wheat from the Black Sea region has dwindled, buyers are looking for other producers who have also been affected by bad weather, says a New Delhi-based dealer with a global trade body.
“It is clear that the US wheat crop cannot be scratched. The weather will reduce the yield there like in other countries, ”he said.
The United States Department of Agriculture (USDA) says spring wheat seed planting is 49% complete, as of Sunday, the lowest in trade estimates and well above the five-year average of 83%.
For winter wheat, the USDA rated 28% of the crop from good to excellent, 1 percentage point higher than the previous week.
The European Union’s Crop Monitoring Service (MARS) on Monday lowered its forecast for the average soft wheat yield in the EU from 5.95 tonnes / ha last month to 5.89 tonnes per hectare (t / ha), now 2.5% below the 2021 level.
Maize fell 0.45% to $ 7.82-3 / 4 per bushel and soybeans fell 0.28% to .8 16.82-1 / 4 per bushel.
The USDA says farmers planted 72% of their intended maize acre, up from an average of 68% in a Reuters analyst survey.
Soybean planting was 50% complete by Sunday, the USDA said, up from 30% a week earlier. The figure was ahead of the average analyst’s estimate of 49%, but lagged behind the five-year average of 55%.
Rising palm oil prices are boosting demand for soybeans and are also effectively supporting beans, the dealer said. (Reporting by Rajendra Yadav; Editing by Sherry Jacob-Phillips)