US MIDDAY: wheat moves higher

US wheat futures edged higher early on Wednesday on a round of mild bargain buying following a 10-session losing streak that pushed prices to a three-month low, traders said. "Wheat is due for a bounce, but any rebound may be limited unless some major problems develop on the northern Plains into Canada or elsewhere around the world," said Bryce Knorr, senior editor at Farm Futures Magazine.
Corn futures were lower for the fifth day in a row, with the front-month contract hitting its lowest since February 27 on expectations for beneficial growing weather across the US Midwest. Soyabean futures firmed on technical buying, with investors buying any dips that pushed the benchmark July contract below its 40-day moving average. The weather outlook kept the gains in soyabeans in check.
At 11:36 am CST (1636 GMT), Chicago Board of Trade soft red winter wheat for July delivery was up 2-3/4 cents at $6.15-1/2 a bushel, on track for its first positive session since a 1/4 cent gain on May 19. The recent 10-session losing streak, the longest in 20 years, cut 9.2 percent off of the value of front-month CBOT wheat.
"There is some bargain hunting today after the recent price falls," one European trader said. "Some of the big importing countries, especially in Asia, have been reducing corn and wheat purchases until the bottom of the price cycle is reached and pent-up import demand is expected." Plentiful global stocks have acted as an anchor on the wheat market, alleviating concerns about a drought in the US Plains limiting crop production in that key growing region.
CBOT July soyabeans were 4-1/4 cents higher at $14.85-1/2 a bushel after falling 1.3 percent on Tuesday. CBOT July corn was down 2-1/4 cents at $4.56 a bushel after hitting a low of $4.55, Prices have dropped 3.5 percent during the current losing streak. Commodity Weather Group said on Wednesday that thunderstorms hit the central and north-western portions of the Midwest in the past day, favouring eastern Nebraska, south-west Iowa and northern Missouri. The forecaster said that flooding and hail damage from the storms, which were severe in areas, was not widespread.