Chicago | Reuters — U.S. wheat futures rose on Thursday, led by a 2.9 per cent rally in the benchmark Chicago Board of Trade July contract, on concerns about dry weather leading to crop shortfalls globally.
Corn also rise, following the gains in wheat, while soybeans generated strength from a bullish report on U.S. crushing, traders said.
All three commodities had traded in negative territory during Thursday’s session before rebounding.
Technical buyers added to the strength in wheat as some buy stops were taken out once the weather forecast turned the market around.
“There are concerns for Western Europe, Ukraine, northeast China — there’s dry trends in those areas getting some discussion,” said Dan Cekander, analyst at DC Analysis. “The 30- to 90-days (forecast) has above-normal temperatures.”
CBOT July soft red winter wheat futures settled up 10-3/4 cents at $4.53-3/4 a bushel (all figures US$). K.C. July hard red winter wheat gained 7-3/4 cents to $4.65-1/4 and MGEX July spring wheat rose five cents to $6.32-1/2 a bushel.
CBOT July corn was up 2-1/2 cents at $3.79-1/2 a bushel, with gains limited by expectations that rain in the U.S. Midwest would alleviate any potential damage to the crop that high temperatures could cause.
“There is plenty of rain in the forecast,” ED+F Man Capital said in a note to clients. “The Corn Belt in general should see one to two inches of rain in the next few days, with the six- to 10-day forecast showing more of the same.”
CBOT July soybean futures settled three cents higher at $9.34-3/4 a bushel. Soybeans recovered from early weakness after dipping below their 10-day moving average.
U.S. soybean crushings were heavier than expected during May, with plants in the eastern Midwest, Iowa and the Southwest sharply raising their pace of processing during the month, the National Oilseed Processors Association said on Thursday.
NOPA said its members crushed 149.246 million bushels during May, the second busiest May on record.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Michael Hirtzer in Chicago, Naveen Thukral in Singapore and Nigel Hunt in London.