Wheat eyes best week since 2012 on weather worries
Category: Grains
(Reuters) – Chicago wheat futures slipped on Friday but were on course for their largest weekly gain since 2012 amid concerns that heavy rains may hit crop quality in the southern U.S. Plains.
Wheat has risen more than 9 percent so far for the week.
Traders are waiting for more information on the fate of U.S. hard red winter wheat as harvest gets underway in the southern Plains. There are worries torrential rains and flooding last month may hit crop yields in major producing states Oklahoma and Texas.
Wheat for July delivery on the Chicago Board of Trade was down 0.6 percent at $5.20-3/4 per bushel by 0637 GMT after rallying 2.5 percent on Thursday. On a continuing contract basis , the grain has still risen 9.2 percent this week, its biggest since July 2012.
Some “nervousness about damage” to the U.S. hard red winter wheat crop has propped up prices, said Phin Ziebell, agribusiness economist at National Australia Bank.
“But overall I think the harvest will still shape up alright.
“When you look at the overall global supply picture it’s looking pretty strong really and that makes it harder for the U.S. generally (to sell its wheat) irrespective of what happens with harvest,” said Ziebell.
The U.S. Department of Agriculture said export sales of U.S. wheat in the week ended May 28 included net cancellations of 20,400 tonnes for 2014/15 and net sales of 364,100 tonnes for 2015/16, in line with expectations.
Ahead of the USDA’s monthly supply/demand report on June 10, analysts surveyed by Reuters expect the government to raise its forecast for U.S. 2015/16 wheat production.
Chicago corn was unchanged at $3.63-1/2 a bushel after hitting $3.64-1/2 on Thursday, its highest since May 22. Corn has risen 3.4 percent for the week, its biggest since February.
Soybeans dropped 0.2 percent to $9.45 per bushel, after touching $9.48-3/4 overnight, its loftiest since May 19.
The USDA said export sales of U.S. corn in the week ended May 28 showed net sales of 464,900 tonnes for delivery in 2014/15, down 29 percent from the previous week and 31 percent from the prior four-week average.
Net sales of U.S. soybeans were 130,300 tonnes, down 60 percent from the previous week and 42 percent from the prior four-week average.
