PARIS/BEIJING - Chicago wheat futures extended gains on Wednesday, lifted by signs of improving demand and bargain buying after three straight sessions of losses pushed the contract to its lowest level since February. Corn was flat and soybeans edged higher.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 1.33% to $9.48 a bushel. Corn was unchanged at $6.59-1/4 a bushel and soybeans were up 0.5% at $14.70-1/4 a bushel. Jordan's state grains buyer purchased about 60,000 tonnes of hard milling wheat to be sourced from optional origins in a tender that closed on Tuesday.
Indicating signs of demand, Bangladesh, Pakistan and Egypt also launched tenders to purchase wheat. The reports of more demand supported Chicago wheat prices.
"Grain market rebounded on buying interests and as Egypt announced a wheat tender. In addition, after last week's sharp decline, traders are correcting their positions before tomorrow's USDA report," French consultancy Agritel said in a note. The U.S. Department of Agriculture (USDA) will issue its closely watched U.S. acreage and stocks data on Thursday.
Analysts expect the USDA in its acreage report to show an upward revision to this year's corn plantings and a cut to the estimated soybean and spring wheat area.
The talks on clearing grains export passage from the Black Sea Region, blocked after the Russia-Ukraine war, and expanded harvest in the northern hemisphere continued to weigh on the global market. Brazil corn exports are forecast to reach 1.683 million tonnes in June, versus 1.758 million tonnes forecast a week earlier.
Soybean exports from the South American country were seen reaching 10.154 million tonnes in June vs 10.795 million tonnes forecast in previous week, ANEC said Tuesday. Commodity funds were net buyers of Chicago Board of Trade corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.
(Reporting by Hallie Gu and Dominique Patton in Beijing and Sybille de La Hamaide in Paris; Editing by Sherry Jacob-Phillips, Amy Caren Daniel and Mark Porter)