PARIS/SINGAPORE: US wheat futures rose for a third consecutive session on Thursday, amid growing doubts that parched winter wheat belts in the southern US Plains would receive significant rain.
Corn and soybeans were little changed, as investors awaited clearer indications about planting trends.
Grain markets were also watching for weekly US export data at 1230 GMT for an update on overseas demand.
The Chicago Board of Trade most active wheat contract had added 0.5 percent to $4.91-3/4 a bushel by 1019 GMT.
Kansas wheat, which represents the hard red winter (HRW) wheat variety most affected by drought, led gains, adding 1.1 percent to $5.13-1/4 a bushel.
Corn was unchanged on the day at $3.91-3/4 a bushel and soybeans inched up a quarter of a cent to $10.41-1/2 a bushel.
"It is a weather market for wheat, prices are likely to remain volatile depending on weather forecasts and positioning by investors," said an India-based agricultural commodities analyst.
Earlier forecasts of substantial rainfall in the US Plains this weekend had led to sharp losses on Monday. But subsequent projections have pointed to limited rain next week, which could keep crops struggling with drought.
"Weekend rainfall to help US winter wheat, but quantity and location as well as potential for rainfall next week still in doubt," Thomson Reuters Agriculture Research analysts said in a note.
Delays in spring wheat planting, linked to cold weather, in the northern US Plains have also supported prices, although warmer conditions forecast could help field work speed up.
The prospect of more favourable planting weather curbed corn futures, after earlier delays fuelled speculation some area may be switched to later-planted soybeans.
Investors were also monitoring potential fallout from trade tensions between the United States and China.
China said on Tuesday it would slap a hefty anti-dumping deposit on imports of US sorghum, leading to a rise in Australian sorghum prices.
Comments
Comments are closed for this article.