Weather woes push US wheat futures higher; corn, soy weak

CHICAGO: US wheat futures firmed on Thursday on concerns about crop health in rain-soaked areas of the southern US Plains, traders said.

Corn and soy futures weakened, with investors beating down early rally attempts due to ample global supplies of both commodities.

K.C. hard red winter wheat, which tracks the crop grown across the southern Plains, notched the biggest gains, rising nearly 1 percent. MGEX spring wheat rose to a 3-1/2-month high on worries that dryness in northern parts could hinder early development of crops recently seeded there.

"The wheat market traded higher (on) short covering and wet weather conditions throughout the winter wheat areas," Ami Heesch, market analyst at CHS Hedging, said in a research note to clients. "There are concerns about quality and protein in the winter wheat from all the rain."

At 10:35 a.m. CDT (1535 GMT), K.C. hard red winter wheat for July delivery was up 3-3/4 cents at $4.36-1/2 a bushel and MGEX July spring wheat futures were 3-1/2 cents higher at $5.64-1/2 a bushel. Chicago Board of Trade July soft red winter wheat, the most actively traded wheat contract was 1 cent higher at $4.33-1/2 a bushel.

Some bargain buying and short-covering also supported wheat, which was on track for its second straight day of gains.

"I think the wheat market has bottomed out at around $4.30; funds are short on wheat and any short-covering will support prices," said Ole Houe, an analyst with brokerage IKON Commodities in Sydney. "Buyers are thinking prices are not going to get any cheaper."

CBOT July corn futures were 3/4 cent lower at $3.70-1/2 a bushel.

The US Agriculture Department on Thursday said private exporters sold 115,400 tonnes of corn to unknown destinations for delivery in the 2016/17 marketing year.

But dealers continued to monitor sales from China's state reserves which could limit demand on the international market.

"Higher sales from China domestic reserves are likely to impact Chinese corn imports over the coming weeks," ING said in a market note on Thursday.

CBOT July soybeans were 4-3/4 cents lower at $9.43-1/2 a bushel.