Wheat at one-week high as freezing US weather in focus

PARIS/SINGAPORE: Chicago wheat futures climbed 2% on Tuesday to hit a one-week high as frigid temperatures in US growing areas raised concerns about crop damage.

Soybeans were up for a third consecutive session as tightening US supplies and harvest delays in Brazil underpinned prices.

Corn prices were higher, recouping a small loss from the previous session.

Severe cold has gripped a swathe of the United States, bringing deep frost as far south as Texas.

The cold blast could hurt winter wheat crops in parts of the US Plains where snow cover is lacking, although some traders said it was hard to judge at this stage.

"There are worries about winter kill for grains in the US," said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities.

"We think it is a bit early to get worried but that is what is driving prices higher today."

The most-active wheat contract on the Chicago Board of Trade was up 2.0% at $6.49-1/2 a bushel, as of 1219 GMT.

It earlier rose to its highest since Feb. 9 at $6.56-1/2.

Chicago markets were closed on Monday for US Presidents Day but traders in Europe said US weather worries amplified a price rally on Euronext, where front-month futures closed at a two-week high.

CBOT soybeans were up 1.0% at $13.85-1/2 a bushel and corn was also 1.0% higher, at $5.44 a bushel.

US soybean processing plants likely handled their third-largest monthly crush on record on January, according to analysts polled ahead of a National Oilseed Processors Association (NOPA) report due later on Tuesday.

Brisk domestic and export demand for US soybeans has eroded stockpiles and the slow arrival of Brazil's new crop has fuelled supply concerns.

Thousands of trucks loaded with grains for export were stranded close to a cargo transshipment station in northern Brazil, oilseeds trade group Abiove said on Saturday.