Wheat gains as dry weather in Russia exacerbates crop concerns

Wheat in Chicago snapped four days of losses as traders refocused on risks to the harvest in Russia, the world’s top exporter.

Key producing regions lost about 900,000 hectares of the crop after being hit by frosts and dryness in recent weeks, according to Russia’s agriculture ministry. Now, the persistent lack of rain is weighing on the outlook.

“There is no rainfall expected in the coming week in much of the Russian wheat belt, exacerbating existing concerns that the lowest cost supplier will see a significant drop in production,” said Carlos Mera, an analyst at Rabobank. “This should result in higher demand for US wheat.” 

Wheat futures declined last week, after hitting the highest in nine months due to fears over the Russian crop. 

In other grains, soy and corn advanced. Wheat is lifting other grains and oilseed prices, Mera said. 

  • Wheat futures for July delivery rose 2.7% to $6.69 a bushel
  • Soy futures for July delivery rose 0.4%
  • Corn futures for July delivery rose 0.6%