U.S. grains: Wheat climbs on fears of wind damage to US crop

Chicago | Reuters—Chicago wheat futures surged on Monday as wind storms in U.S. grain belts caused concerns about crop damage and traders hoped reduced Russian exports could generate more demand for U.S. supplies, according to analysts.

Soybeans ticked down on lower-than-expected crush numbers, while corn futures edged up.

The dollar’s drop to around five-month lows, which makes U.S. agricultural products cheaper in export markets, also provided support.

Wind storms and tornadoes that tore through the U.S. Midwest and Plains states over the weekend may have caused damage to the region’s wheat crops, according to Karl Setzer, partner at Consus Ag Consulting.

Wind and dust of that kind “can rip apart a field pretty bad,” said Setzer.

Chicago Board of Trade most active wheat Wv1futures settled up 11-1/2 cents to $5.68-1/2 a bushel, having hit their highest point since February 27.

Corn Cv1 ended up 2-1/2 cents to $4.61 a bushel, and soybeans Sv1finished down 1/2 cent at $10.15-1/2 per bushel.

Meanwhile, news that Russia is cutting its wheat export forecast is also supportive, as is a previous week of good U.S. export sales for the crop, Setzer said.

Russia’s March wheat exports are estimated to fall, consultancy Sovecon said on Monday. Russia’s government has sought to cut wheat exports to keep domestic flour and bread prices low.

Corn traded near flat on decent export sales, but little other news was enticing funds to buy, said Setzer.

Soybeans fell as the National Oilseed Processors Association (NOPA) crush came out below a range of trade estimates, said Setzer.

U.S. soy processors crushed the smallest volume of soybeans in five months during February, according to data released on Monday.

The numbers wiped out support from news that China is putting together another economic stimulus package, which could have boosted demand from the world’s top importer of the oilseed.

China’s State Council on Sunday revealed what it called a “special action plan” to boost domestic consumption, featuring measures including increasing residents’ income and establishing a childcare subsidy scheme.

—Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore