Wheat at two-week high as cold weather threatens US crop

SINGAPORE: Chicago wheat edged higher on Thursday to its highest in two weeks as concerns above-normal temperatures across the US grain belt underpinned the market.

Soybeans rose as the market took a breather after dropping for the last four sessions to their weakest since early October.

The Chicago Board of Trade most-active wheat contract was up 0.2 percent at $4.24-1/2 a bushel by 0331 GMT, after climbing to its highest since Dec. 7 at $4.25 a bushel.

"Certainly, at these prices there is some support and we are seeing unfavourable weather in the United States," said Phin Ziebell, agribusiness economist at National Australia Bank.

"But it is a tough bet to see a sustained pick up in prices as there are ample supplies."

Temperatures in hard wheat-growing areas in the United States are expected to be below normal next week, forecasters said.

Sub-zero lows measured in Fahrenheit are not forecast to be as widespread as thought earlier this week, but temperatures in some areas may still be frigid enough to damage crops, they said.

Soybeans rose 0.1 percent to $9.54-3/4 per bushel. The market is trading not far from Wednesday's 2-1/2-month low of $9.52-3/4 as rains in Brazil and Argentina are expected to improve crop condition. Corn gained 0.1 percent to $3.49-1/2 a bushel.

Brazil and Argentina are on track for another year of bumper soybean production as rains ease concerns over dry weather brought by the La Nina weather phenomenon.

Rains that fell on Argentina's main farm belt over the weekend brought relief to parched soy and corn-growing land, meteorologists said on Monday, allowing the planting of crops to resume in most of the affected areas.

China, the world's top soybean buyer, will reduce the amount of foreign material allowed in shipments of US soybeans as of Jan. 1, the US Department of Agriculture said, a move that may curb imports.

Commodity funds were net buyers of CBOT corn, wheat and soymeal contracts on Wednesday and net sellers of soybeans and soyoil, traders said.