CBOT Weekly: Wheat set to increase, as soybeans, corn to recede

Glacier FarmMedia | MarketsFarm – While the general direction for soybeans and corn on the Chicago Board of Trade is to continue moving lower, United States wheat was on the rise and is to remain so in the coming weeks, according to a trader.

Ryan Ettner of Allendale Inc. in McHenry, Ill. said the latest principal field crop report from Statistics Canada should have pressured U.S. wheat to move lower. StatCan pegged all wheat production for 2024/25 at 34.37 million tonnes, up from the 32.95 million taken off Canadian fields in 2023/24.

“I think that the story is overshadowed by another story. That France saw a sharp drop in its wheat quality,” Ettner stated, noting that French wheat production is also down.

Added to that has been short covering in U.S. wheat by the speculative funds. Ettner said the funds began adding to their short positions on Monday, continuing on Tuesday and Wednesday.

As for U.S. soybeans and corn, he suggested those commodities could continue to go lower given the size of this year’s crops.

“The trade is always looking ahead 30 days. They are already at these price levels when the [U.S. Department of Agriculture] will raise yields in September,” Ettner said.

He added that the trade barely flinched during last week’s Pro Farmer crop tour, having assumed yields are going to increase.