(Bloomberg) – Wheat rose to the highest in more than two months on speculation freezing temperatures in the Midwest may damage crops in the U.S., the world’s top exporter, and dry conditions in the Black Sea region may stress plants.
The contract for May delivery advanced as much as 0.5 percent to $6.20 a bushel on the Chicago Board of Trade, the highest since Dec. 19, and was at $6.1925 by 10:16 a.m. in Singapore. Prices climbed 1.9 percent yesterday, the biggest gain since Feb. 4.
Extreme cold temperatures are forecast for the Midwest, with soft-red winter wheat somewhat at risk after the recent warm spell melted protective snow cover, DTN said yesterday. Warm temperatures across Ukraine, Belarus and the North Caucasus through next week will keep snow cover limited, MDA Information Systems LLC said yesterday. Limited rain will allow soil moisture to decline and showers are needed before spring to prevent significant stress once crops break dormancy, it said.
“The weather pattern coming into the U.S.” may support prices, said Paul Deane, an analyst at Australia & New Zealand Banking Group Ltd. in Melbourne. “The crops through the Black Sea region are a little bit dry as well and snow cover in Ukraine had largely melted as of last week. The crop is potentially exposed in some of that region.”
Corn for May delivery lost 0.2 percent to $4.5675 a bushel, set to decline for a third day. Soybeans for May delivery declined 0.2 percent to $13.72 a bushel after touching $13.78 yesterday, the highest since Sept. 13.
