BY ONOME AMUGE
Wheat futures edged higher in the market, buoyed by concerns over tightening global supplies and rising prices in major consuming countries.
The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 0.4 percent to $10.62-1/2 a bushel.
Market analysts observed that prices of the commodity had eased earlier in the week on expectations of resumption in Black Sea supplies. They, however, noted that the market is still cautious about the likelihood of a deal over Ukrainian ports as the war lingers in Ukraine while the Russian government seeks sanctions concessions rejected by the Ukrainian government and its Western allies.
Meanwhile, Argentina’s wheat planting area for the 2022/23 season is expected to be around 6.5 million hectares, down from previous forecast of 6.6 million hectares, according to the latest report by the Buenos Aires Grains Exchange.
The exchange blamed the 100,000 hectare or 247,000 acre reduction on dry conditions in the northern region of the South American country, with no rains seen in short-term forecasts.
Meanwhile, industry officials said the Indian government has allowed wheat shipments of 4.69 million tonnes since banning most exports in May, but at least 1.7 million tonnes of the commodity were reported to be lying at ports and could be damaged by looming monsoon rains if shipping delay persists.
Meanwhile, corn and soybeans ended the week on a bearish note as corn was down 0.1 percent to $7.29-1/4 a bushel, while soybeans dropped 0.1 percent to $17.27 a bushel. For the week, corn lost around six percent, while soybeans also dropped marginally.
According to the U.S Department of Agriculture (USDA) the corn and soybean markets are currently focused on U.S planting. Corn planting was reported to be 86 percent complete, near the five-year average pace of 87 percent, while soybeans planting was reported to be 66 percent complete, up from a week earlier.