MADRID/SINGAPORE: US wheat futures climbed to their highest levels for seven weeks on Wednesday, rising for a fourth straight session amid fears bad weather would curb supplies from top exporters the United States, Canada and Europe.
Corn rose by more than 2 percent on delays to plantings in the world's biggest exporter, the United States, on tight old-crop stocks. Firm grain prices meanwhile lifted soybeans by 1.1 pct.
"Farmers might be forced to switch to soybeans if corn plantings continue to get delayed, which will be bearish for soy and bullish for corn," said Ker Chung Yang, an analyst at Phillip Futures in Singapore.
"The US wheat crop condition is slightly better but it is still bad. We have a similar situation in China, Europe and Canada."
Chicago Board of Trade wheat for May was up 2.1 percent to $8.02? a bushel by 1147 GMT and May corn added 2.3 percent to $7.66? a bushel. May soybeans advanced 1.1 percent to $13.56? a bushel.
The US Department of Agriculture estimated on Monday hard red winter wheat crop's slow deterioration due to dry weather, rating 38 percent of winter wheat in poor to very poor shape compared with 36 percent a week earlier.
A dry spell in Britain, Germany and France has raised concern that yield potential for EU wheat could be diminished, while wheat seeding in western Canada may be delayed up to three weeks due to waterlogged soils.
"As long as it stays dry, prices will have to remain high because we're in a situation where we already have low stocks," a dealer said in France, Europe's biggest exporter.
May milling wheat in Paris was up 1.59 percent to 255.25 euros ($367.4)/tonne by 1133 GMT.
Corn futures stayed due to historically tight supplies and unusually cool weather in the US Midwest threatening to further delay spring sowing.
Still, Russia may export 5 million to 10 million tonnes of grain in the 2011/12 season to appease farmers grappling with lower domestic prices and higher production costs ahead of elections, an analyst said.
CBOT soybean futures meanwhile rose in step with corn and wheat, but a slowdown in Chinese purchases capped gains.
Chinese soybean importers may seek to cancel or delay more soybean shipments as the government sells its soybean stocks cheaply, which could pressure global prices, Hamburg-based oilseeds analysts Oil World said.
Commodity funds were net buyers of an estimated 8,000 contracts of Chicago Board of Trade corn futures on Tuesday. They were net buyers of an estimated 4,000 wheat and 3,000 soybean contracts.
Comments
Comments are closed for this article.