Corn, Wheat Futures Gain on Russia, Ukraine Output Concerns

By Luzi Ann Javier

Aug. 10 (Bloomberg) -- Corn and wheat futures gained, reversing earlier declines, on concern dry weather in major exporters Russia and Ukraine, will damage crops, curbing supply.

South and east Ukraine and South Russia are not likely to have enough rain in the seven days through Aug. 14, and “major losses to corn” are expected, weather forecaster DTN Meteorlogix LLC said in a report Aug. 7. “Significant crop losses” were seen in spring wheat areas in Russia and Kazakhstan because of dry weather, DTN said.

“Adverse weather conditions in major growing regions around the world can be a bullish factor by negatively impacting on yield prospects,” CWA Global Markets Pty said in a report e- mailed today. Russia is the world’s second-largest exporter of wheat and Ukraine is the fourth-largest corn shipper, according to the U.S. Department of Agriculture.

Corn for December delivery gained as much as 1.2 percent to $3.3025 a bushel, reversing a 1.6 percent decline earlier. The most-active contract traded at $3.285, up 0.6 percent, in after- hours electronic trading on the Chicago Board of Trade at 2:11 p.m. Singapore time. The grain rose for the first day in five.

Wheat for December delivery gained as much as 0.8 percent to $5.2075 a bushel in Chicago, after losing as much as 0.9 percent earlier. The most-active contract last traded at $5.1875 a bushel, up 0.4 percent.

Soybeans for November delivery, after harvests in the U.S., were little changed at $10.39 a bushel at 2:22 p.m. Singapore time after slumping 2.6 percent to $10.12, the lowest level since Aug. 3 for the most-active contract. The oilseed rose 5.8 percent last week, the second straight weekly advance.

Soybeans, which can be processed to make biodiesel to stretch diesel supply, earlier fell as crude oil declined in New York on concern demand from motor vehicles, which usually peaks June through August, may be slower than expected.

“Lower energy prices reduce demand for soy as an input in the production of biofuels,” CWA Global said.

Crude oil September delivery fell as much as 1 percent to $70.22 a barrel on the New York Mercantile Exchange, before trading at $70.51 a barrel at 2:25 p.m. Singapore time.

-- With assistance from Jae Hur in Singapore. Editors: Richard Dobson, Ravil Shirodkar

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net