SYDNEY: Chicago wheat rose for a second straight day on Thursday, supported by cold weather which is threatening the newly sown spring wheat in the United States and some of the more mature winter crop.
Corn futures firmed, building on Wednesday's gains amid tight old-crop supplies weather threat to the newly planted crop, while soybeans were little changed after closing lower in the last session.
"Given where we've come off from in wheat, you could blame people for taking a little bit of risk protection in case it (cold weather) does occur," said Brett Cooper, a senior manager of markets at FCStone Australia.
Chicago Board of Trade wheat rose 0.4 percent to $6.30-3/4 a bushel by 0315 GMT and May corn also climbed 0.4 percent to $6.38 3/4 a bushel. May soybean futures rose 1-1/4 cents to $14.23-1/4 a bushel.
Wheat futures have risen on short-covering, bargain buying and talk of potential harm to some of the wheat crop due to the freezing weather. Top quality spring wheat also rose on demand for high protein wheat and to low US spring wheat plantings.
The USDA, in its annual March 30th plantings report, said 2012 US spring wheat acreage would total only 11.976 million, below an average of analysts' estimates for 13.313 million and down from last year's sowings of 12.394 million. USDA also pegged this year's US corn acreage at 95.864 million, the biggest planted area in 75 years.
Freezing temperatures early on Wednesday covered most of the Midwest and some damage may have occurred to emerging corn and jointing wheat in portions of central Illinois, central and southeastern Indiana, southwestern Ohio and a few spots in Kentucky, Commodity Weather Group said.
Another bout of cold weather was expected early on Thursday followed by warmer temperatures and rainfall, then there was the potential for another freeze next week, according to a meteorologist.
US spring wheat planting was 21 percent complete, up from just 3 percent a year ago and well above the five-year average of 5 percent, according to the US Department of Agriculture.
However, some traders are concerned that planting numbers in North Dakota, the top spring wheat-producing state, where seeding was 17 percent complete, indicates a wider trend of farmers favouring corn over wheat.
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