US wheat futures rose about 1 percent in their fifth straight session of gains on Wednesday on growing concerns that Russia could curb its exports as the country nears a self-imposed quota in the coming months. Russia, which is projected to be the third-largest global wheat exporter, in 2011 said it would export no more than 23 to 25 million tonnes of grain in the current marketing year.
But exports through mid-January surged to a record 19.5 million tonnes, seven months since Russia lifted a nearly year-long export ban after drought reduced crops in 2010. Many traders and analysts now expect Russia to impose protection duties in April, when shipments are likely to hit the threshold of 23-25 million tonnes.
The chatter helped to push wheat futures at the Chicago Board of Trade to roughly a three-week high on Wednesday, with wheat for March delivery gaining 5 cents to $6.38-1/2 per bushel after rising as high as $6.49-1/2. Ideas of fewer Russian wheat exports were also supportive to corn, with CBOT March corn gaining 1-1/4 cent to $6.31-1/2. CBOT March soyabeans eased 7 cents to $12.13 per bushel, pressured by rains in parched Argentina. The soyabean crop there is developing, while the corn crop was considered too damaged to benefit much from the precipitation.
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