Chicago wheat futures bounced back this morning, rising for the seventh time in the last eight sessions. The shrinking excess at major suppliers in the northern hemisphere is keeping prices near a nine-year high.
Soybean courses are also gaining ground due to strong Chinese demand for U.S. supplies after one between the leaders of the two nations.
"We are running into a tight supply situation, especially with higher quality wheat," said a Singapore-based trader for an international trading company.
The wheat market is being driven by declining supply in the northern hemisphere.
Condition ratings for the US winter wheat crop improved, although most analysts expect no change. The U.S. Department of Agriculture on Tuesday assessed 46% of winter wheat crops for the 2022 crop to be good to excellent, up from 45% a week earlier.
The agency said that private exporters have reported sales of 270,000 tons of corn to Mexico. For the second day in a row, a sale to the largest buyer of US grain deliveries was announced.
Deliveries of French common wheat outside the European Union reached their highest level since the 2014/15 season in October last month, as deliveries to China increased after a relatively quiet September.
A video call on Monday between US President Joe Biden and Chinese counterpart Xi Jinping raised hopes that a new dialogue could boost Chinese purchases of US soybeans.
Exporters also reported the sale of 161,000 tons of soybeans to unknown destinations, the third trading day in a row that a so-called flash sale of soybeans was announced.
Source
Hansa Terminhandel GmbH