Chicago Close: Wheat Higher on Russia Downgrade

Wheat futures finished with solid gains on Wednesday, buoyed by short covering and a downgrade in expected Russian production.

According to media reports, Russian agriculture consultancy SovEcon reduced its forecast for Russia’s 2020 wheat crop by 400,000 tonnes to 79.3 million tonnes amid dryness for the spring wheat crop. Short covering also came forward following the losses in wheat a day earlier. September Chicago wheat was up 9 ¼ cents to $5.32 ¾, September Kansas City gained 9 cents to $4.45 ¾ and September Minneapolis was 4 ¾ cents higher at $5.11.

Corn fell for the fourth straight day as generally decent weather conditions in the American Midwest increased the chances of a bigger-than-expected crop this year. Despite some pockets that remain overly dry, corn and soybeans are progressing through the reproductive and filling stages of development without heat stress. In fact, forecasts suggest near or below normal temperatures will continue through much of the next 6 to 10 days. September corn was down 4 ½ cents to $3.15 ½ and December lost 3 ¾ cents to $3.26 ¼.

Soybeans were also undermined by good Midwest weather. August beans dropped 5 ¼ cents to $8.91 ½ and November was down 2 ¼ cents at $8.85 ¼.

Live cattle were higher today, while lean hogs ended lower.

Source: DePutter Publishing Ltd.

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