Wheat set for biggest weekly gain in 4 years on weather worries

Reduced yield estimates in the U.S., Canada and Russia have coincided with a wet July in Europe. (Shutterstock)

• CBOT wheat up 11 percent this week on parched U.S., Canada spring crop
• Corn, soybeans steady as market assesses dry northern U.S.

PARIS/SINGAPORE, July 16 : Chicago wheat rallied again on Friday to head for its biggest weekly gain in four years as parched conditions for North American spring wheat and adverse weather in Europe stoked concern about global supplies.
Corn and soybeans edged higher and were also set for weekly gains as drought in the northern United States put the onus on other growing belts achieving bumper yields in order to replenish falling US stocks.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.6 percent at $6.83 a bushel by 11:08 a.m. GMT, after earlier hitting a two-week high. Over the week, wheat is up 11.1 percent, the biggest weekly gain since June 2017.
“You’ve got the US and Canada, Russia with reduced yield estimates and over here the July rain,” a European trader said of wheat crop concerns.
Weather forecasts showed hot weather and scant rainfall in the week ahead in northern US and Canadian spring wheat zones where crops have been struggling with dryness. In western Europe, torrential rain that has caused deadly floods in Germany and Belgium was raising concern about late yield loss and quality downgrades for ripening wheat crops.
In Russia, forecasters have reduced harvest estimates, partly because of lower than expected yields in the key southern export region that has this summer faced heavy rain followed by hot, dry weather. A heatwave in the Black Sea region was also raising concern about corn crops.
“As a result, more and more operators are questioning the ability of Ukraine to achieve a new corn production record this year,” consultancy Agritel said.
Alongside a large US crop, a bumper Ukrainian harvest has been seen as important for easing tight global supplies of the feed grain.
CBOT corn was up 0.5 percent at $5.58-3/4 a bushel and soybeans added 0.8 percent to $13.90-1/2.
Rain forecast this week in the Midwest curbed corn futures on Thursday, while soybeans also eased in the previous session after data showing the smallest monthly US soybean crush in two years in June.