PARIS/CANBERRA: US wheat futures rose on Thursday to their highest in around two weeks as weather charts suggested some Plains crops already stressed by drought may face frosts this weekend, analysts and traders said.
Corn and soybeans ticked down after rallying a day earlier when forecast of rain raised early concerns about planting delays in the Midwest.
Grain markets were also monitoring developments in the Middle East. Crude oil, which has often influenced movements in grains during the conflict, edged higher as investors set peace hopes against ongoing disruption to energy supplies.
Chicago Board of Trade (CBOT) wheat for July delivery was up 1 percent at USD6.07-3/4 a bushel at 1154 GMT, after reaching its highest since April 3.
K.C. July wheat, which represents the hard red winter wheat variety most exposed to the Plains drought, was up 2.2 percent at USD6.52-1/2 per bushel, after rising to its highest since April 1.
Weather forecasts projecting some rain relief in the western Plains next week had restrained prices on Wednesday. But doubts over how much moisture will reach driest areas and the arrival of a cold front rekindled crop fears on Thursday.
“Wheat is up on the combination of technical signals and weather issues,” said Andrey Sizov of consultancy Sovecon. “The market seems to start to react to freeze risk in US winter wheat states on April 18.”
Worries over crop damage to US wheat have tempered price pressure from ample global wheat supplies and broadly favourable growing conditions elsewhere in the northern hemisphere.
Traders are also monitoring potential knock-on effects on crops from disruption to fertiliser supply from the Gulf.
“The world’s waiting a little bit. The longer the Strait of Hormuz is closed, the more production shortages there will be,” said Dennis Voznesenski, an analyst at Commonwealth Bank in Sydney.
CBOT most-traded corn was down 0.2 percent at USD4.50-1/2 a bushel and soybeans were down 0.2 percent at USD11.64-3/4 a bushel.
While rain may hamper early planting in the US Midwest, forecasts of rain across much of Brazil were easing concern about dryness affecting the country’s second corn crop.
Elsewhere, growers group AGPM said on Wednesday that the area planted with corn in France could fall by 10-15 percent this year, partly due to soaring fertiliser and energy costs.
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