CHICAGO, – Chicago Board of Trade wheat futures jumped to their highest level in more than a week on Wednesday as dry weather fuelled concerns about crops in the U.S. Plains, analysts said.
Soybean futures topped a one-week high following recent sales of U.S. supplies to China, while corn futures also rose.
The markets rebounded from losses on Tuesday as traders adjusted their positions before the U.S. Department of Agriculture was slated to issue key crop data on Monday.
WINTER WHEAT CONDITION IN FOCUS On Tuesday, USDA data showed that condition ratings for U.S. winter wheat crops fell during December in Kansas, the top U.S. winter wheat producer, and other Plains states.
The decline caught traders’ attention, said Rich Nelson, chief strategist for Allendale. However, dry weather at this time of year does not affect crop yields, he said.
“It’s a psychological story,” Nelson said, adding that rains in the spring were more important to determining yields.
Most-active CBOT wheat futures were up 8-1/4 cents at $5.18-3/4 per bushel at 12:45 p.m. CST after rising to the highest point since December 29. Prices were recovering after dropping on Friday to their lowest level since October.
K.C. March wheat futures were up 9-3/4 cents at $5.31-1/4 per bushel.
On Monday, the USDA was scheduled to issue estimates for U.S. winter wheat plantings, along with estimates for last year’s corn and soybean yields and other data.
The USDA may trim its corn yield estimate due to dry weather at the end of last year’s growing season, traders said.
CBOT corn futures were up 2-3/4 cents at $4.46-3/4 per bushel, while soybeans were up 11 cents at $10.67-1/4 per bushel. On Tuesday, the USDA confirmed exporters sold 336,000 metric tons of U.S. soybeans to China as the world’s top importer continued purchases after a late-October trade truce with Washington. Chinese state stockpiler Sinograin bought 10 U.S. soybean cargoes this week, totalling about 600,000 tons, three traders told Reuters on Tuesday. Sales of U.S. soybeans to China will partly dent demand for Brazilian soy this year, Brazilian grain traders lobby Anec said.
This article was generated from an automated news agency feed without modifications to text.
