Wheat extends rally with weather, war risks in focus

*
Corn futures bolstered by wheat rally, strength in oil market
*
Soy pressured by possible European anti-deforestation law delay
*
Brazilian rain forecast also weighs on soybean futures
By P.J. Huffstutter
CHICAGO, – Chicago Board of Trade wheat futures rose further on Wednesday, setting a new 3-1/2-month high, as concern grew about drought in Russia while a drone attack on a Ukrainian river port kept attention on war risks.
Corn prices also extended gains to a fresh three-month peak, supported by wheat and strength in the oil market after an Iranian missile attack on Israel.
Soybean futures turned lower on outlooks for beneficial rains next week in northern Brazil’s soy belt and news that the European Commission proposed delaying new anti-deforestation rules that analysts said have helped bolster demand for U.S. soymeal over South American supplies in recent days.
The European Commission on Wednesday said it would propose delaying implementation of its policy to fight deforestation by a year, following calls from industries and countries to do so.
The most-active CBOT corn contract settled up 3-1/2 cents at $4.32-1/2 a bushel after touching $4.34-1/4 a bushel, the highest since June 28.
CBOT soybeans eased down 1-1/4 cents at $10.56 a bushel. Wheat ended up 16-1/4 cents at $6.15-1/4 a bushel, after touching $6.17-1/4, the highest since June 14.
Russia’s weather forecast agency said on Wednesday that drought conditions for winter crops in some key producing regions were “worse than usual” in October.
While a western stretch of the Black Sea region has received significant rainfall, much of Russia’s winter wheat belt has stayed dry – fuelling market talk that Russia may restrict its exports later this season.
Analysts also have downgraded expectations for Australia’s upcoming harvest by well over a million tons due to lack of rainfall and widespread frost.
“The wheat market is so fragile right now that all of these things are building up and the volatility is starting to really show in the market,” said Karl Setzer, partner at Consus Ag Consulting.
This article was generated from an automated news agency feed without modifications to text.