Wheat up for second day on short-covering, US weather concerns

SINGAPORE: Chicago wheat futures rose for a second session on Thursday with short-covering by investors while concerns over cold weather hurting the US winter wheat crop underpinned the market.

Corn and soybeans ticked higher although gains were capped by ample world supplies.

The most-active wheat contract on the Chicago Board Of Trade was up 0.4 percent at $4.18-1/4 a bushel, as of 0234 GMT, near the session high of $4.19 a bushel, the highest since Dec. 8.

Soybeans climbed 0.1 percent to $9.79-3/4 a bushel, having firmed 0.4 percent on Wednesday, and corn was unchanged at $3.49 a bushel, having gained 0.4 percent in the previous session.

The wheat market is finding support after dropping to the lowest in 11 months on Tuesday.

"One suggestion is that US hard red winter wheat crops, poorly established in dry soils, are vulnerable to cold without snow cover," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

"We think the risk is there but it is latent rather than active."

Commodity funds were net buyers of CBOT soybean, corn, soymeal and wheat futures contracts on Wednesday, trader said. They were net sellers of soyoil futures.

Record supplies are likely to cap gains.

The US Department of Agriculture raised its forecast for world wheat stocks in 2017-18 to a new record, while also increasing the expected stockpile in the United States.

The agency lifted its estimate for global wheat inventories at the end of June 2018 to an all-time high of 268.42 million tonnes, up from last year's record stocks of 255.33 million tonnes.

Rains expected this weekend in Argentina's main soy- and corn-growing areas will provide some relief to drought-stricken areas in the country's central farm belt, holding out hope that crop losses may yet be minimal. Argentina is the world's top soymeal exporter and the No. 3 corn supplier.