(Reuters) – U.S. grains edged higher on Tuesday, the first day of trading after a long weekend, and traders expected prices to rise further as unfavourable weather limits supplies from the Black Sea region and South America. The market is also awaiting the U.S. Department of Agriculture’s updated crop forecast, which will be announced at a Feb. 23-24 conference. The data is likely to confirm that farmers will plant 94 million acres with corn, the largest area since 1944, which could double stocks next year.
Chicago Board of Trade March wheat rose 0.1 percent to $6.44-3/4 a bushel by 0440 GMT, after touching a one-week high on Friday.
Corn for March delivery gained 0.1 percent to $6.42-1/2 a bushel, while March soy also rose 0.1 percent to $12.69 a bushel. “The market is relatively quiet after a long weekend and
keenly waiting for the USDA outlook figure. At the moment, we are seeing strong export demand for U.S. wheat and lower supplies from Russia and Ukraine,” said Lynette Tan, an analyst
with Phillip Futures in Singapore.
Ukraine expects to lose a large share of its winter grains this year due to bad weather. A local newspaper reported on Friday that grain traders had agreed to limit wheat exports to
1.7 million tonnes from February to July, as the government is concerned about domestic supplies. Any drop in Black Sea exports will hit a market that is already tight due to reduced grain output from drought-stricken
South America.
Severe winter weather over the past month has also raised concerns about Western Europe’s main wheat crop, but analysts and experts said the crop should emerge largely unscathed,
provided it does not face further stress from weather that rapidly swings between freezing and thawing. On Monday, concerns about potential weather damage increased
benchmark prices for French new crop wheat in Paris 2.75 euros, or 1.42 percent, to 196.50 euros.
Industry experts are meeting in Singapore this week for a global grains conference, where supply issues will remain in focus.
Grains prices at 0440 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 644.75 0.75 +0.12% +2.54% 637.80 50
CBOT corn 642.50 0.75 +0.12% +0.98% 632.03 54
CBOT soy 1269.00 1.50 +0.12% +0.85% 1220.58 77
CBOT rice $14.20 $0.06 +0.46% -0.70% $14.34 52
WTI crude $104.71 $1.47 +1.42% +2.35% $99.83 78
Currencies Euro/dlr $1.325 $0.001 +0.05% +0.53%
USD/AUD 1.071 -0.005 -0.45% -0.58%
Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
