CHICAGO: US wheat futures rose on Monday as traders focused on the condition of the crop after severe cold snaps in key growing regions. “Wheat is receiving some support from cold weather in Black Sea export countries,” StoneX commodity risk manager Matt Ammermann said. “Global wheat markets continue to focus on the need to replace Russian supplies following Russia’s grain export taxes.”
Adding support were some concerns about cold temperatures and dry soils in parts of the US Plains, including the top hard red winter wheat production state of Kansas.
The gains in wheat lent strength to corn futures, while soyabeans held steady as traders waited to see if the pace of export would pick up with the end of China’s Lunar New Year celebrations. All three commodities were expected to remain within recent trading ranges after hitting multi-year highs earlier in 2021.
“Markets need to take a breather,” said Dan Hussey, senior market strategist at Zaner Group. “We have had a great bullish run, but bull markets need to be fed.”
At 10:46 a.m. CST (1646 GMT), Chicago Board of Trade March soft red winter wheat futures were up 7-3/4 cents at $6.58-1/2 a bushel.
Weakness in the dollar, which makes wheat relatively less expensive to overseas buyers, added support.
The US dollar resumed its slide against major currencies and reached multi-year lows against the British pound and the Australian dollar on Monday. CBOT March corn was up 5-1/4 cents at $5.48 a bushel and CBOT March soyabeans were 1 cent higher at $13.78-1/4 a bushel. The US Agriculture Department on Monday morning said that weekly export inspections of corn totalled 1.232 million tonnes. Export inspections of soyabeans were 721,845 tonnes and export inspections of wheat were 324,597 tonnes. All three were in line with market expectations.
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