CHICAGO: US wheat futures firmed slightly on Wednesday, supported by signs of a pick-up in demand for US offerings on the export market, traders said. Soybean and corn futures weakened on forecasts for dry weather that should allow farmers to pick up the pace of their harvest.
The benchmark Chicago Board of Trade soft red winter wheat contract was led higher by MGEX spring wheat, which neared a one-month peak amid concerns about shortfalls in high-protein supplies despite ample global wheat stocks.
"Though world supplies of wheat remain plentiful, quality concerns around the world are helping the US attract some business," Bryce Knorr, Farm Futures senior grain market analyst, said in a note to clients.
At 10:46 a.m. CDT (1546 GMT), CBOT December soft red winter wheat was up 1 cent at $4.05 a bushel. MGEX spring wheat for December delivery was up 4 cents at $5.06-3/4 a bushel.
"There was additional support for the wheat market with the Australian crop suffering from bad weather and hopes for more US exports." Australia's wheat crop is likely to fall short of official estimates of near-record volumes as heavy rains exacerbate recent damage to the crop. Problems in Australia could help push Asian export customers to the United States, traders said.
CBOT December corn was down 1-1/4 cents at $3.30-1/2 a bushel and CBOT November soybeans were off 1/4 cent at $9.52-1/4 a bushel.
"Weather forecasts in the huge Midwest grain and soybean belts are looking dryer, which is what is needed at this stage of the year when the combine harvesters are rolling," said Frank Rijkers, agrifood economist at ABN AMRO Bank. "It should be remembered that record-large US soybean and corn crops are expected."
US corn and soybean harvests have been advancing slightly slower than average, US Department of Agriculture (USDA) data showed on Monday. But weather forecasts for the coming three days anticipate dryness in the massive Midwest grain belts.
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