U.S. grains: Wheat climbs with dry weather fears continuing

Chicago | Reuters—Chicago Board of Trade wheat futures hit highs not seen since January for a second day, as anxiety over dry weather conditions persisted for top exporter Russia.

Corn futures turned higher, following wheat, while soybeans eased as investors watched planting progress in the United States and harvest prospects in South America.

Soybean futures also were weighed down by weakness in the soyoil market, and ongoing pressure for cheaper priced Brazilian beans hitting the global market, said Don Roose, president of U.S. Commodities.

The most-active wheat contract on the Chicago Board of Trade (CBOT) WN24 closed up 7-1/2 cents at $6.20-1/2 a bushel, after hitting its highest since Jan. 26 at $6.23-1/2.

Dry weather in some Russian and U.S. wheat producing regions kept attention focused on spring weather risks to northern hemisphere crops, encouraging investors to cover some of their large short positions in wheat.

Forecasts showed limited rain relief in southern Russia until at least early May, though parts of the U.S. Plains could get moisture this week.

“I think that there’s just several little pockets that we could see trim production from an overall standpoint,” said Angie Setzer, partner at Consus Ag Consulting.

Elsewhere, India is struggling to replenish its wheat stocks, which could raise the prospect of it importing supplies, which also supported prices this week.

CBOT corn CN24 inched up 3-1/2 cents to $4.52 a bushel and soybeans SN24 dipped 1-3/4 cents to $11.79-3/4 a bushel.

For corn and soybeans, rain and colder temperatures in the Midwest could hinder planting progress later this week.

A seasonal slump in ethanol production added some pressure to corn futures, but analysts said traders expect plants to have revolving closures for maintenance as farmers head to the fields.

—Additional reporting for Reuters by Gus Trompiz in Paris and Naveen Thukral in Singapore