By Tom Polansek
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Wheat prices are expected to rise as traders digest
disappointing harvest results from former Soviet states devastated by drought
and wait for the results of a tender from Egypt, the world’s largest importer
of the grain.
The harvest is rolling in the former Soviet Union and confirming
expectations for a poor crop due to scorching heat and dryness. Traders are
monitoring the results and the weather, which could hinder plantings of the
next wheat crop this autumn if conditions stay dry.
Russia, the world’s third-largest wheat exporter last year, so far has
harvested 29 million tons of wheat on 12.6 million hectares, with an average
yield of 2.29 tons a hectare. A year ago, harvest was 39.3 million tons on 13.6
million hectares, with an average yield of 2.89 tons a hectare.
Technical short-covering bounce after the big declines on Tuesday.
Support from expected continued brisk export sales of U.S. wheat due to the
drought-reduced wheat crop this year in Russia. High protein contracts
traded at KCBT and MGEX leading the way up.
Technical short-covering bounce following the drop on Tuesday that was
triggered by fund long-liquidation and profit taking. Solid demand for corn
amid the drought-reduced supply of feedgrains this year in Russia
underpinning corn futures. Gains limited by approach of active harvest of
an expected large U.S. corn crop.
Recovery bounce after the declines on Tuesday. Brisk export sales of
U.S. soy, especially to China, underpinning soybean futures. Gains limited
by approach of U.S. harvest of an expected record large soybean crop.