Global grain market: wheat futures rose on Tuesday, corn and soybean futures fell

On Tuesday, October 03, 2023, wheat futures on the Chicago Board of Trade (CBOT) rose on China's purchase of US wheat. At the end of the trading day, December quotations of soft winter wheat on the Chicago Mercantile Exchange CBOT rose to $208.88 per ton, December futures of hard winter wheat KCBT in Kansas City - to $251.04 per ton, December futures of hard spring wheat MGEX - to $266, 57 per ton.

Wheat futures rose on Tuesday thanks to unexpected buying from China. Corn futures fell on Tuesday.

Chicago soybean futures fell on Tuesday, at one point nearing their lowest level since December 2021, pressured by a stronger dollar, a new U.S. crop and a brisk start to planting in Brazil.

Chicago Board of Trade (CBOT) soybeans fell 0.3% to $12.72-3/4 a bushel. Futures traded as low as $12.56-3/4, a three-month low and a quarter-cent above the Dec. 15, 2021 low.

The fall in soybean prices coincided with a rise in the US dollar, which rose to a three-month high against the Brazilian real. Soybeans were already under pressure from the US Department of Agriculture report. U.S. Department of Agriculture (USDA) data released Monday showed the current soybean crop was largely unscathed by a hot, dry summer in the U.S. Farm Belt, which also weighed on prices. According to the USDA, the current US soybean crop is 23% complete, up from 20% last year. Crop conditions have improved, with 52% of crops rated good or excellent, up from 50% the previous week.

Chicago wheat futures rose nearly 0.7% to settle at $5.68-1/2 a bushel, extending gains from Monday on bargain buying after prices fell 6% to a three-year low on Friday.

Low prices attracted Chinese importers. China purchased 220,000 metric tons of soft red winter wheat, according to the USDA. This is the first time China has purchased this class of wheat from the US since July 2021.

CBOT corn futures moved lower, falling 1-1/4 cents to settle at $4.87-1/2 a bushel.

At the Chicago Board of Trade (CBOT) on Monday, contracts for delivery in November and December:

wheat (DCBR 2023) - 208.88 dollars/t (20570 rubles/t) - plus 0.66%;
corn (DCBR 2023) - 191.93 dollars/t (18,900 rubles/t) - minus 0.26%;
soybeans (NBR 2023) - 467.65 USD/t (46,050 RUB/t) - minus 0.33%;
rice November (November 2023) - 772.42 dollars/t (76,070 rub./t) - minus 0.72%;
rapeseed (ICE, Nov. 2023) - 717.40 cad/t (52,260 rub./t) - plus 1.47%.

The French wheat market rose on Tuesday. At the end of the trading day, December quotes for milling wheat on the Parisian MATIF exchange rose to €236.50 per ton (in dollar equivalent - up to $247.76). November futures November corn quotes - up to €207.00 per ton (in dollar equivalent they decreased to $216.85).

On the Paris Exchange (MATIF) on Tuesday, quotes for November and December contracts at the closing of trading were:

flour milling wheat (DCBR 2023) - 247.76 dollars/t (24,400 rubles/t) - plus 0.82%;
corn (NBR 2023) - $216.85/t (RUB 21,360/t) - minus 0.65%;
sunflower (Oct. on the SAFEX exchange - 8875.00 zar./t (46,080 rub./t) plus 0.85%;
sunflower oil (Oct. Rotterdam, bulk FOB) - $915.00/t (RUB 90,110/t) plus 1.67%.

For reference, exchange rates as of 10/03/2023:
RUB 98.4785 = US dollar
103.8680 rub. = Euro
RUB 72.8391 = Canadian dollar
RUB 51.9251 = 10 South African rand