Wheat touches two-month high

US wheat futures jumped as much as 1 percent on Tuesday, extending gains from the previous session to a two-month high as investors bet that heavy rains would hit yields of the winter wheat crop in the southern US Plains. Soyabeans also rose, reaching a three-week peak as a broad-based commodities rally pushed up crude oil, copper and gold. The dollar lost ground for the second straight session, making goods priced in the greenback more attractive in international markets.
"They're getting some money flow today, not just in grains but in the commodities as a whole," said Water Street Solutions analyst Arlan Suderman. Rains were forecast from Friday and during the six-to-10-day outlook in the southern Plains wheat belt, the Commodity Weather Group said, slowing harvest after the wettest May on records. Elevators were monitoring grain quality as farmers started to gather their wheat. "Wheat is pretty golden in southern Kansas and we're going to start harvesting in a couple days, and that's just when the rains are going to come," Suderman, based in Wichita, said.
Investors were squaring positions ahead of a US Department of Agriculture monthly supply and demand report due on Wednesday. Analysts, on average, expected the government to boost ending stocks estimates for wheat and corn, and reduce its supply outlook for soyabeans for the 2014/15 marketing season, according to a Reuters poll. Chicago Board of Trade wheat for July delivery finished 4-1/4 cents higher at $5.32-1/4 per bushel, after earlier reaching $5.37-1/4 - highest since April 6. CBOT July soyabeans were up 7-1/4 cents to $9.51-1/2 per bushel, further supported by a 2.2 percent spike in soyameal futures. Soyameal climbed as US processors idled their crushing plants for seasonal maintenance, tightening supplies of the animal feed.
Corn for July delivery edged 1/4 cent lower to $3.65, retreating in a profit-taking selloff after an earlier three-week high of $3.68-1/2. USDA on Monday slashed good-to-excellent condition ratings for the winter and spring wheat crops, and showed that the pace of soyabean plantings was slightly below average. The condition of the corn crop was unchanged, USDA said.