Wheat hits 1-month low as snowfall aids crops in US key growing region

CANBERRA: US wheat futures edged lower to hit a one-month low on Monday, as heavy snowfall across a key US growing region aided crops that are beginning a key growth phase.

FUNDAMENTALS

• The most active wheat futures on the Chicago Board Of Trade were down 0.2% at $6.37-3/4 a bushel by 0217 GMT, near the session low of $6.36-3/4 a bushel, its lowest since Feb 12. Wheat closed down 0.6% on Friday.

• The most active soybean futures were up 0.2% to $14.16-1/4 a bushel, after closing little changed on Friday.

  • The most active corn futures were down 0.3% to $5.37-1/2 a bushel, after ending nearly flat in the previous session.

  • A powerful snowstorm struck the US Rockies and High Plains, aiding winter wheat crops.

  • Argentina is expected to harvest 44 million tonnes of soy and 45 million tonnes of corn this season, below the previously forecast 46 million tonnes for each crop, due to dry conditions, the Buenos Aires Grains Exchange said last week.

MARKET NEWS

• The US dollar held firm, after bouncing off a one-week low last week, supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to smoulder.

• Oil prices edged up, with Brent drifting near $70 a barrel, propped up by output cuts from major producers and optimism about global economic and fuel demand recovery in the second half of the year.

• Global stock prices were off to a solid start while US bond yields hovered near a 13-month peak, as investors bet US economic growth will accelerate after the passing of a massive stimulus package.