PARIS/SYDNEY: US wheat touched its highest level in more than a week on Monday as expectations for reduced plantings and risks to crops from dry weather lent support to a market that has been weighed down by large inventories.
Soybeans and corn also touched their highest levels in over a week, with higher crude oil prices and an easing in the dollar from a near 14-year high helping crop markets.
Corn, however, turned slightly lower during European trading, still capped by an expected record US harvest.
The most active wheat futures on the Chicago Board Of Trade were up 0.3 percent at $4.09 a bushel by 1204 GMT, after earlier reaching $4.12, the highest since Nov. 10.
"There are a few factors supporting prices. There is the expectation that US farmers will plant less wheat, while there is continued dry weather in some parts of southern Plains (states)," said Phin Ziebell, agribusiness economist at National Australia Bank.
Grain investors were awaiting weekly crop data from the US Department of Agriculture (USDA), due after the market close, for an update on wheat conditions.
Drought expanded last week in much of the US Southeast and Plains states including Oklahoma, Kansas and Colorado, according to the latest weekly US Drought Monitor report.
Weather forecasters expect some rainfall in the week ahead and some analysts argue it is too early to anticipate yield losses in next year's harvest.
Projections of reduced crop area have also supported wheat prices.
Widely watched private analytics firm Informa Economics on Thursday lowered its estimate of US winter wheat plantings for harvest in 2017 to 33.761 million acres, from 35.421 million.
Informa also forecast US all-wheat plantings for 2017 at 47.265 million acres, which if realised would be the lowest in USDA records dating back to 1919.
The most active CBOT corn futures inched down 0.1 percent to $3.45 a bushel, easing from a session high of $3.47-1/2 that was its highest since Nov. 9.
Soybean futures added 0.9 percent to $10.03 a bushel, near a session high of $10.07-1/4 a bushel, a level not reached since Nov. 11.
Like in corn, US farmers are expected to harvest a record soybean crop, but a series of export sales to China has helped counter supply pressure.
Gains for palm oil and crude oil on Monday also provided some support for soybeans, which are used to produce soyoil for food and biofuel consumption.
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