US grain prices rebounded on Tuesday, led by Chicago wheat which rose 3 percent to a four-week high on indications that Russia may curb exports soon. Traders cited potential wheat losses in the Black Sea region and other key growing areas in Eastern Europe because of a cold snap that threatened to harm the winter crop.
CBOT March wheat was up 21-1/4 cents at $6.66 per bushel, March corn rose 7-1/4 to $6.39 and March soyabeans gained 13-3/4 cents at $11.99 per bushel. Wheat posted its biggest percentage gain in a month and wheat's premium over corn was its highest since October 3. Since the middle of last year the premium has approached the 30-cent mark about every two months before falling back.
Soyabeans found support from strong US cash markets, good exporter demand, slow farmer selling and some worsening outlooks for reduced South American output. However, soya prices faced resistance from wetter weather that was expected to help revive soya output in Argentina, the world's third-largest soya exporter and the top exporter of soyameal and soyaoil.
Increased foreign demand and thin spot supplies lifted Soyabean basis bids for delivery at US Gulf Coast export markets to their highest levels since mid-July, grain dealers said.
Because US soyabean prices were competitive with new-crop Brazilian supplies for shipments in mid- to late-March, some global importers stepped up purchases of US beans this week, dealers said. Traders described the gains in US wheat and Euronext wheat markets as the standout feature of Tuesday's trade.
"Wheat's the leader. There is fear Russia may shut off exports sooner rather than later," said Roy Huckabay, grains analyst for The Linn Group.
Russia is considering a protective grain export duty to put a brake on record shipments, Deputy Agriculture Minister Ilya Shestakov told Reuters on Tuesday.
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