GRAINS-Wheat Firms, Holds Near 7-Mth Top On U.S. Dry Weather Woes
Category: Grains
(Reuters) – U.S. wheat edged higher on Wednesday to linger near a seven-month high as dry weather across a key U.S. producing region threatens curb crops, already damaged by recent adverse weather.
FUNDAMENTALS
* The most active wheat futures on the Chicago Board Of Trade were up 0.2 percent to $4.78 a bushel by 0120 GMT, having closed up 0.9 percent on Tuesday when prices hit a high of $4.79 a bushel – the highest since July 31, 2017.
* The most active soybean futures were up 0.3 percent to $10.52-1/2 a bushel, having closed up 0.3 percent on Tuesday.
* The most active corn futures were unchanged at $3.70-1/2 a bushel, having gained 0.5 percent in the previous session.
* U.S. Department of Agriculture on Monday rated the wheat crop in top growing state Kansas at only 12 percent in good to excellent condition, down 2 points from a month ago.
* Wheat ratings also declined in Oklahoma, Montana, the Dakotas, Nebraska and Colorado.
* Severe cold in Europe this week was also keeping attention on weather risks, although snow cover was expected to limit the impact of deep frosts in top wheat exporter Russia.
* Soybeans draw support from scant rainfall in Argentina that continued to threaten harvest prospects in the No. 3 global producer after Brazil and the United States.
* However, the impact on global supply could be curbed by Brazil’s harvest which some forecasters expect to set a record volume.
MARKET NEWS
* The dollar stood near a three-week high against a basket of currencies on Wednesday, after Federal Reserve Chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.
* U.S. oil prices extended declines into a second day after industry data showed an increase in U.S. crude and gasoline stockpiles, with surging production in the country hampering OPEC attempts to end a global glut.
* U.S. stocks suffered on Tuesday their biggest daily drops since the selloff three weeks ago, after the Fed chairman’s comments.
