Chicago | Reuters — U.S. wheat futures surged 3.6 per cent to their highest in more than three weeks on Wednesday, with traders focused on dry and cold weather in key growing areas of the Midwest and southern Plains.
Weather concerns also boosted soybeans and corn as investors shrugged off recent rains in South America.
“We are getting more showers over Argentina today… but the private meteorologists are still calling for February to be on the dry side,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note. “Brazil is not getting any soaking rains, and is not forecast to get any until perhaps the end of next week.”
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Corn futures rose for the third day in a row and hit their highest since Dec. 28.
Wheat notched the biggest gains, with the most-active Chicago Board of Trade March soft red winter wheat contract rising 27-1/2 cents to $7.96-1/2 a bushel (all figures US$). The contract also hit its highest since Dec. 28.
“A cold snap is currently underway in the U.S., raising concerns about winter wheat crops weakened by this fall’s water deficit,” French consultancy Agritel said.
CBOT March corn ended up 11 cents at $6.10-1/2 a bushel.
A buildup of Russian troops along the country’s border with Ukraine also lent support.
“Tensions between Russia and Ukraine have reached a new high, with U.S. and European officials speaking as if a military conflict is imminent, which could shut down corn and wheat exports from the region, further tightening world supplies,” Arlan Suderman, chief commodities economist at brokerage StoneX, said in a note.
Wheat was underpinned by strong global demand, highlighted by activity on the export market. State grain buyers in both Jordan and Iran on Wednesday issued tenders to purchase wheat.
Soybeans snapped back from three straight losing sessions, with the March contract finishing up 30 cents at $13.91-1/4 a bushel.
— Mark Weinraub is a Reuters commodities correspondent in Chicago; additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
