Wheat up on US cold snap, USDA supply report awaited

HAMBURG: Chicago wheat rose on Monday, as US grain belts were hit by freezing temperatures, while the continuing impact of Russia's wheat export tax also provided support.

Soybeans were little changed and corn rose as markets awaited the monthly world supply and demand report from the US Department of Agriculture (USDA) on Tuesday, which is expected to confirm tightening stocks of soybeans and corn.

Chicago Board of Trade most-active wheat rose 0.6% to $6.45-1/2 a bushel at 1148 GMT.

Soybeans fell 0.05% to $13.65-3/4 a bushel, drifting in and out of positive territory.

Corn rose 0.4% to $5.51 a bushel, close to the peak of $5.58 a bushel hit last week, the highest since June 2013 after huge Chinese purchases of US supplies.

"Wheat is rising today following cold weather in parts of the United States, while corn and soybeans are drifting ahead of the USDA world supply and demand reports on Tuesday," said Matt Ammermann, StoneX commodity risk manager.

"It is the first real cold snap of the year in US grain regions with temperatures as low as minus 10 to minus 20 degrees Centigrade in some areas."

"We will not know the actual impact on wheat crops until the spring but the low temperatures are in focus today along with the continuing debate about Russia's wheat export tax."

The USDA's forecasts of soybean and corn inventories on Tuesday will be closely watched after the massive sales of US corn to China.

"Soybeans and corn markets are awaiting the USDA reports with focus on estimates for export demand and probably lower US inventories," Ammermann said.

The USDA will also update its forecasts of corn and soybean crops in major exporters Brazil and Argentina.

Rains in Brazil which slowed harvesting of the soybean crop may continue in February.