On Monday, Chicago grain futures edged higher with support from a weaker greenback and USDA WASDE report later in the day for Midwest crops and global supply forecast.
At the time of writing, the most-active corn contracts on the Chicago Board of Trade (CBOT) were trading higher by 0.10% to $6.85-½ per bushel. Likewise, wheat advanced by 0.50% to $8.74 a bushel and soybean was up by 0.20% to $14.15 a bushel.
CBOT futures recovered small losses in the earlier session, aided by a sharp drop in the US dollar against a soaring euro.
On September 12, grain markets are waiting for the monthly World Agricultural Supply and Demand Estimates (WASDE) report from the United States Department of Agriculture (USDA).
The agency is widely anticipated to curtail its US corn harvest estimate following drought-affected field conditions.
According to a JPMorgan analyst, the average trade projections call for a -1.60% month-over-month in global corn stocks in a US yield-led output cut.
Furthermore, several experts believe that there is a possibility that Russian wheat production could sharply rise and EU maize output could decline.
In addition, a warm and dry weather forecast in much of the central US for this week ahead also accentuated contrasting harvest odds.
Black Sea grains
Moreover, investors are assessing the situation in the Black Sea region after Ukraine reported more territorial recovery from retreating Russian invaders. It follows the Kremlin’s criticism of a diplomatic agreement that covers Ukrainian grain exports.
On Monday, Kyiv announced that its forces had advanced further in the nation’s northeastern region to reclaim territory previously seized by Moscow.
Last week, markets’ uncertainty over supplies from the crucial Black Sea output regions was heightened by comments from Russia that criticized the United Nations-brokered deal that restarted grain shipments from Ukraine’s sea ports.
Meanwhile, France announced on Sunday that it would sign a treaty with Romania to reinforce proxy routes for grain exports from Kyiv.
