US wheat futures climbed to a one-month high on Monday on firm domestic cash values and signs of rising global cash prices, traders said. Corn futures followed wheat higher but soyabean futures fell, with the benchmark January contract hitting its lowest level in more than two months.
As of 12:57 p.m. CST (1857 GMT), Chicago Board of Trade December wheat was up 14-1/2 cents at $5.29-3/4 a bushel after reaching $5.32-1/2, its highest price since Oct. 21.
CBOT December corn was up 1-1/4 cents at $3.70 a bushel while January soyabeans were down 4-1/2 cents at $8.92-1/2 a bushel, the contract's lowest level since Sept. 12.
Wheat futures rose on a mix of fund-driven short covering and bullish fundamentals including rising cash values for US and Russian supplies, wet weather in Europe and fears of a decline in US acreage.
Heavy rain is expected to reduce winter cereal sowings in parts of Western Europe, the European Union's crop monitoring unit, MARS, said on Monday. Ahead of the US Department of Agriculture's weekly crop progress report, analysts surveyed by Reuters on average expected the government to rate 51% of the US winter wheat crop in good to excellent condition, down from 52% a week ago.
Meanwhile, Russian wheat prices recorded a second consecutive weekly rise last week amid higher export demand and lower domestic supply caused by concerns about the 2020 crop in Russia and Ukraine, analysts said.
CBOT soyabean futures fell as uncertainty about US-China trade talks and improving South American crop weather overshadowed strong weekly US export inspections.
The USDA reported export inspections of US soyabeans in the latest week at 1,942,761 tonnes, the highest weekly total in two years. US trade talks with China, a key market for US agricultural goods, especially soyabeans, remained a key focus.
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