BEIJING – Chicago Board of Trade wheat futures rose on Wednesday as the market grapples with cold weather concerns in the Black Sea region, a major wheat production area. The most-active wheat contract on the Chicago Board of Trade CBOT wheat was up 0.1% at $5.29-1/2 a bushel by 0428 GMT.
“Wheat futures firmed on the back of concerns regarding cold weather and fears of winterkill in the U.S. and Black Sea growing regions,” said Joe Boyle, agricultural analyst at Bendigo Bank. Forecasters have said that temperature fluctuations and rainfall have resulted in many fields in central and eastern Ukraine being covered by an ice crust, prolonged exposure to which can seriously damage plants.
Extreme frosts were expected to hit Ukraine this week, with temperatures projected to drop to minus 30 degrees Celsius (minus 22 degrees Fahrenheit).
CBOT corn was flat at $4.28-1/2 after the U.S. Treasury Department’s updated guidance on biofuel tax credits. The Treasury on Tuesday issued a proposed rule governing how biofuel makers can access a $1-per-gallon tax credit for low-carbon transportation fuels, including aviation fuel.
The guidance gave clarity and support to biofuel producers, traders said. The long-awaited rule helped push corn futures higher in the last session as the grain is used to produce ethanol, a major biofuel.
“Corn futures also gained additional support from export demand from South Korea,” said Boyle. Leading South Korean animal feed maker Nonghyup Feed Inc. bought an estimated 134,000 metric tons of animal feed corn in an international tender seeking up to 207,000 tons on Tuesday, European traders said. The corn consignments were bought for June arrival in South Korea. Elsewhere, CBOT soybean fell 0.1% to $10.65 a bushel, amid ample global supply.
In Brazil, the world’s largest soybean producer and exporter, output is expected to reach 181.6 million metric tons in 2025/26, consultancy firm StoneX said on Monday, raising its outlook by 2.3% from a January projection.
