(Bloomberg) -- Wheat extended gains for a second day amid steadying prices in Russia and worsening crop conditions in the US.
Futures rose as much as 1.5% in Chicago after climbing 2% on Tuesday following reports that corn, soybean and spring wheat ratings deteriorated in the US last week. At the same time, domestic wheat prices in Russia have started to firm, indicating stronger demand even if local farmers aren’t yet ready to sell, said StoneX chief commodities economist Arlan Suderman.
“It’s further confirmation of a bottom in Black Sea cash wheat prices, and Black Sea really sets the market,” he said.
Futures also got some support from new signs suggesting tighter supply in Europe. Germany harvested 15% less wheat this year, the government announced in a preliminary report. Still, that’s unlikely to hit US prices much until exports pick up later this marketing year, Suderman said.
Wheat prices hit a four-year low late last month amid prospects for improving global supplies.
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