Onome Amuge

Wheat futures slipped nearly 1 per cent on Tuesday, snapping a two-session rally, as strong supplies from major exporters and forecasts of a bumper Australian harvest weighed on sentiment across grain markets.

The most actively traded wheat contract on the Chicago Board of Trade fell 1 per cent to $5.29 a bushel by mid-morning in Asia. Corn eased 0.6 per cent to $4.17¾ a bushel, while soybeans declined 0.8 per cent to $10.46¼ a bushel, extending the oilseed’s losses into a second session.

“We have seen strong harvests in several exporting countries and the outlook for the Australian crop is also promising. Prices in exporting countries are coming under pressure as there are no supply-side issues as of now,” said a Singapore-based grains trader. 

Australia’s agriculture ministry this week forecast the country’s wheat production at 33.8 million tonnes for the 2025 season, about 22 per cent above the 10-year average, thanks to largely favourable growing conditions. The outlook compounds already plentiful supplies from northern hemisphere producers, including Russia, where export prices continue to decline as fresh crop arrivals mount.

Corn and soybean markets also softened as US farmers prepare to deliver record harvests into global supply chains. Although soybean prices had risen recently on hopes that China might resume large-scale purchases of US crops, demand from Beijing has yet to materialise amid ongoing trade frictions with Washington. Traders are watching closely for developments, with senior Chinese negotiator Li Chenggang due in the US this week for discussions.

Data from the US Commodity Futures Trading Commission showed hedge funds and other speculative investors trimmed their net short positions across corn, wheat and soybeans in the week to August 26, signalling caution ahead of the US harvest and potential trade shifts.