US wheat prices climbed on Tuesday in a light rebound from multi-month lows set on Monday, although forecasts for much-needed rains in the Plains wheat belt kept a lid on gains, analysts said. Corn also firmed while soyabeans were choppy as traders adjusted positions ahead of a pair of key crop reports due Friday from the US Department of Agriculture.
As of 12:38 pm CDT (1738 GMT), Chicago Board of Trade May wheat was up 3-1/4 cents at $4.24 per bushel. The contract hit a 2-1/2 month low on Monday at $4.18-1/4. CBOT May corn was up 1 cent at $3.56-3/4 a bushel and May soyabeans were steady at $9.71-1/2 a bushel. Wheat bounced back after expectations for rains in the Plains pressured futures over most of the last week. The showers should bolster yield prospects for the developing winter wheat crop.
The outlook for rains across the Plains as well as the southern Midwest and the Mississippi River Delta over the next week also supported corn futures by threatening to delay seeding in those areas. However, planting is still a few weeks away in core Corn Belt states like Iowa and Illinois.CBOT corn attracted bargain-buying a day after the May contract dipped to $3.54-1/4, its lowest level of 2017. Some traders were adjusting positions ahead of the USDA's planting intentions and quarterly stocks reports, which have been known to jolt markets.
Analysts expect a 5.7 percent jump in US soyabean sowings from a year ago but reductions in corn of 3.2 percent and an 8 percent cut in wheat sowings. CBOT soyabean futures were narrowly mixed after hitting their lowest level in about five months the previous day, with bumper South American harvests keeping a lid on gains.