Chicago wheat slips as harvest pressure sets in; soybeans set for weekly gain

Chicago wheat futures pulled back on Friday after a pre-holiday short-covering rally in the U.S., as harvest pressure looms in Europe and Black Sea region.

Soybean futures eased but remain on track for a third straight weekly gain, partly supported by strong soyoil prices amid escalating tensions between Israel and Iran. Corn is poised to end the week lower.

FUNDAMENTALS

* The most-active wheat contract ZW1! dropped 0.74% to $5.86-6/8 a bushel, as of 0058 GMT, but remains near a four-month high and is still set for a weekly gain.

* Soybeans ZS1! dipped 0.09% to $10.73-6/8 per bushel but remained on course for a third consecutive weekly gain.

* Corn ZC1! eased 0.23% to $4.32-4/8 a bushel, with prices hovering near their lowest level of 2025.

* Wheat found some support in previous trading session, as weather concerns in parts of the U.S. and Europe prompted speculators to cover short positions. Looming harvest pressure in other growing regions limited gains.

* Strength in the energy market this week, driven by heightened tensions between Israel and Iran, has lent support to agricultural commodities like soybeans and corn. Higher crude oil prices enhance the appeal of soyoil and corn as biofuel feedstocks.

* In Argentina, corn yields are exceeding initial expectations in some areas for the 2024/25 crop, the Buenos Aires Grains Exchange said on Thursday, though it maintained its overall harvest forecast at 49 million metric tons as excessive moisture slowed fieldwork.

* Traders are awaiting market direction from the USDA's weekly export sales report, which will be released later on Friday.

MARKET NEWS

Global stocks fell and the dollar rose on Thursday, reflecting investors' preference for perceived safe havens as concerns mounted over possible U.S. involvement in the Israel-Iran air war, which has ignited a rally in the oil price this week. (MKTS/GLOB)

DATA/EVENTS (GMT)

0100 China Loan Prime Rate 1Y, 5Y June

0600 UK Retail Sales MM, Ex-Fuel MM, YY May

0645 France Business Climate Mfg, Overall Jun

1230 US Philly Fed Business Indx Jun

1400 EU Consumer Confid. Flash Jun