Wheat rises over 1pc to one-week high on dry US Plains

imageCHICAGO: US wheat futures rose 1.2 percent to a one-week high on Wednesday, extending four-day gains to nearly 4 percent on short-covering and concerns about dry weather in US growing regions.

Corn and soybeans also firmed, although renewed strength in the dollar capped rallies.

At the Chicago Board of Trade, May wheat settled up 5-3/4 cents at $ 4.99 per bushel. May corn ended up 3 cents at $ 3.91 a bushel and May soybeans settled up 8-1/4 cents at $ 9.92-3/4 a bushel.

CBOT wheat has rebounded since falling to a five-month low last week. Commodity funds hold a sizable net short position, leaving the wheat market open to bouts of short-covering.

Also, the US winter crop is starting to emerge from dormancy amid dry conditions in the breadbasket of the Plains.

“It’s that time of year when the crop is at some risk, and you’ve got dryness in the Plains,” said Arlan Suderman, market analyst with Water Street Solutions. “But I don’t see any energy for sustaining a rally,” Suderman added.

Corn firmed a day after the US Department of Agriculture cut its forecasts of US and world corn inventories below trade expectations.

US farmers are also seen as likely to reduce 2015 seedings of corn to 88.5 million acres, a five-year low, according to a growers’ survey released by Allendale Inc.

Still, CBOT May corn stayed within the $ 3.75-to-$ 4 range in place since mid-January.

Soybeans rose after Brazilian state crop agency Conab on Tuesday cut its forecast for the 2014-15 soybean crop to 93.3 million tonnes from 94.6 million last month.

Additional support stemmed from uncertainty about the movement of freshly harvested South American crops to ports, given recent protests by truckers and producers.

Argentine farmers halted crop sales on Wednesday, a farming group said, kicking off a three-day strike that is unlikely to affect exports because of sufficient reserves in storage.

Meanwhile, Brazilian government representatives and independent truckers discussed freight rates in Brasilia on Tuesday, their first formal meeting since drivers ended two weeks of roadblocks to protest rising costs.

Copyright Reuters, 2015

You may also like...

Rules of Discussion on Wheat rises over 1pc to one-week high on dry US Plains

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Self-promotion once a week is allowed. Too much promotion or using Contact info in ID will lead to account ban.