Wheat hits nearly six-week high as cold temperatures threaten supplies

BEIJING: Chicago wheat rose to its highest level in more than six weeks on Monday, while corn gained for a third straight session as extreme cold weather in the United States and Russia raised fears over supplies.

The most-active wheat contract on the Chicago Board of Trade (CBOT) climbed 0.4% to $5.31-3/4 a bushel, as of 0252 GMT, having hit its highest since December 12 earlier in the session.

Cold weather in the United States raised concerns of crop losses in wheat fields lacking snow cover.

A powerful US winter storm spread a paralysing mix of heavy snow, sleet and freezing rain from the Ohio Valley and mid-South to New England on Sunday, compounded by bitter, Arctic cold gripping much of the nation east of the Rockies.

An ongoing bout of severe cold in Russia, the world’s biggest wheat exporter, added to the concerns.

The cold weather has disrupted soybean and corn markets, analysts said, as slower processing at plants tightened supplies and lifted futures.

Soybeans gained 0.5% to $10.73 a bushel, rising for a second straight session.

Last week’s talks between US and Chinese officials raised hopes that China could buy more US beans.

US Treasury Secretary Scott Bessent said he held “positive” talks with Chinese Vice Premier He Lifeng.

China had stepped up soybean purchases from the United States after a trade truce in October, but has now fulfilled its commitment to buy 12 million metric tons.

“If China continues to purchase US soybeans, then there is a high probability that US soybean inventories will decrease year-on-year.

We expect US soybeans and US soybean oil to show a volatile but generally stronger trend,“ said a Beijing-based analyst who asked not to be named due to sensitivity. Corn edged 0.2% higher to $4.31-1/2 a bushel.

Regulatory data released on Friday showed large speculators increased their net short position in CBOT corn futures in the week to January 20.