Wheat prices edge up as snow poses threat to Canada crops

• Wheat futures were higher on Monday supported by cold, wet weather in the US and Canada and drought in Australia and Argentina.
• The prospects for crops in key wheat exporter Australia were also diminishing due to a severe drought.

LONDON: Chicago wheat futures were higher on Monday supported by cold, wet weather in the US and Canada and drought in Australia and Argentina, while corn and soybean prices also advanced.

The most active wheat futures on the Chicago Board Of Trade  were up 0.6pc at $4.90-1/4 a bushel by 1021 GMT.

"In Canada, where not even half of the crop has been brought in, cold and wet weather - including the year's first snowfalls - are threatening to damage the harvest," Commerzbank said in a market update.

The prospects for crops in key wheat exporter Australia were also diminishing due to a severe drought.

Australia will set aside an additional A$100 million ($68 million) to support drought-stricken farmers as continued dry weather threatens business for many growers, Prime Minister Scott Morrison said on Friday.

December milling wheat futures on Paris-based Euronext  were up 0.1pc at 174.25 euros a tonne.

Chicago corn futures were also higher with the most active contract up 0.3pc at $3.72-1/2 a bushel.

Dealers said quarterly US corn, wheat and soybean stocks data, to be issued at 1600 GMT on Monday, should provide a short-term focus.

A Reuters survey had an average trade estimate for Sept. 1 corn stocks of 2.428 billion bushels, the highest for the date since 1988.

Sept. 1 soybean stocks had an average trade estimate of 982 million bushels, a record high for the date, with Chinese demand curtailed by ongoing trade conflict.

The most active Chicago soybean futures were up 0.9pc at $8.91 a bushel.

Despite ticking up, fears that the US-China trade relationship could deteriorate further loomed over the market.

US President Donald Trump's administration is considering delisting Chinese companies from US stock exchanges, three sources briefed on the plan told Reuters on Friday.

"US moves to take this dispute into the capital sphere can only make that worse," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.