Asian share markets tracked Wall Street higher after a soft U.S. jobs report pared the risk of a near-term rise in borrowing costs, though a lack of progress in Gulf peace talks saw oil prices creep higher.
Key market drivers and outlook
The most-traded wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 1.1% at $6.46-3/4 a bushel at 0109 GMT, with CBOT corn Cv1 rising 0.2% to $4.62-3/4 a bushel and soybeans Sv1 0.1% higher at $11.77-1/2 a bushel.
CBOT wheat has fallen from highs above $7 a bushel last month but is still up around 27% so far this year. Corn and soy have also been trending higher in recent months.
The U.S. dollar .DXY firmed slightly but remained near a two-month low hit on Friday, making U.S. exports more competitive.
Traders await the U.S. Department of Agriculture's monthly report, due on Tuesday, with updated yield, acreage and production forecasts that could move prices.
Wheat traders are focused on disruptions to Black Sea exports after Russia and Ukraine stepped up attacks on each other's shipping and port infrastructure. Ukraine's President Volodymyr Zelenskiy said on Friday Moscow was targeting global food security by striking Odesa's seaport.
"The attacks raise the risk of slower loadings, higher insurance costs, and more cautious vessel movement. This has already contributed to a risk premium in the market," analysts at JPMorgan wrote in a note to clients dated Aug. 7.
Ukrainian attacks on Russia's fuel supply could also impact agricultural production by restricting the availability of diesel used by tractors and trucks, they wrote.
Meanwhile, Argentine farmers have responded to higher prices by selling grain at a slower pace, the Rosario grains exchange said.
However, the ongoing Northern Hemisphere harvest is keeping a lid on price rises, analysts say.
In corn, France said its production this year would fall by 35% from 2025 to 9.0 million metric tons, its lowest since at least 1980, after heat waves and drought hurt crops, the farm ministry said.
Wheat, corn and soybeans edge higher
Chicago wheat futures rose on Monday, supported by the U.S. dollar hovering near a two-month low and concerns over grain exports following attacks on infrastructure in the Black Sea region.
Corn and soybean futures also edged higher after strong U.S. export sales last week.
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