(AgWeek) – Chicago wheat held near a six-month high on Tuesday as the market continued to worry over a rain-hampered U.S. harvest and harsh weather in other wheat exporting countries.
Gains were limited by a stronger dollar and a cautious mood in the run-up to closely followed U.S. government planting and stocks estimates due at 1600 GMT.
But wheat was still on course to record its biggest monthly rise in five years.Corn moved higher to stay close to Monday’s three-month peak, on concerns about that heavy rain in the U.S. Midwest was reducing yield prospects.
Soybeans, which have also rallied on the wet weather that has disrupted planting of the oilseed, fell slightly as spot prices failed to hold onto the $10 threshold breached on Monday.
Chicago Board of Trade July wheat was up 0.5 percent at $5.83-1/2 a bushel by 1155 GMT, just shy of Monday’s six-month high of $5.87 a bushel.
Wheat has rallied 22 percent so far in June, the most since July 2010.Rain continued to delay the winter wheat harvest, which is running at least a week behind normal.
As of Sunday, 38 percent of the crop was harvested, compared to the five-year pace of 46 percent by the end of June, the U.S. Department of Agriculture (USDA) said in a crop progress report on Monday.
Worries that torrential rain will lower U.S. wheat yields and particularly quality have added to concerns that dry conditions are hurting wheat plants in Canada and Europe.
“Weather forecasters continue to expect Canada’s prairies to dry further this week,” Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, said in a note to clients.”Weather forecasters continue to look for dry conditions in parts of Europe that may evolve into problems given already dry soils.
“CBOT July corn added 0.9 percent to $3.86-3/4 a bushel after climbing to the highest since early April on Monday. Spot soybeans eased 0.5 percent to $9.98 a bushel.Rains across the eastern and southern U.S. Midwest last week damaged corn and soybeans and kept wheat harvest and soybean planting behind normal, according to the USDA.
Price moves were restrained as the market readied itself for the USDA’s acreage and quarterly stocks estimates, one its most closely watched publications of the year.
