Wheat bounces from 1-month low as US crop weather assessed

HAMBURG: Chicago wheat rose on Monday after earlier hitting its lowest in more than a month as the market assessed the impact of welcome rain and snow across US growing regions.

Corn was also firm and soybeans fell.

Chicago Board of Trade most-active wheat rose 0.3% to $6.41 a bushel at 1144 GMT after falling to $6.36 a bushel earlier in the day, the lowest since Feb. 12.

Soybeans fell 0.1% to $14.11 a bushel, corn rose 0.1% to $5.40 a bushel.

Rain and a snowstorm struck the US Rockies and plains on Monday, providing moisture for winter wheat crops.

"Wheat is firm today as the market awaits more signs about the impact of welcome rain for crops in the US," said Matt Ammermann, StoneX commodity risk manager. "Markets fell strongly last week on the forecasts of wetter US weather and the rain this week seems to have been factored into prices."

"It seem to be a classic case of sell the rumour and buy the fact. But dryness concern is not over yet for US crops and the rain this week is not the end of the story."

Corn markets continue to weigh forecasts of reduced crops in Argentina against forecasts of more rain.

Dry weather may cut Argentina's soybean crop to 44 million tonnes and the corn crop to 45 million tonnes from the previously forecast 46 million tonnes for both, the Buenos Aires Grains Exchange said.

"An early start to some corn planting has started in the US which is positive, but like wheat the story is not over yet and much can still change," Ammermann said.

"Soybeans are drifting, remaining torn between firm soyoil and weak soymeal prices. Brazil's soybean harvest also seems to be making reasonable progress."

Soyoil has firmed because of tight world vegetable oil supplies.