(Reuters) – Chicago wheat rose for a third session on Monday, continuing to recover from last week’s five-month low on concerns over freezing weather hurting the U.S. winter crop.
Soybean prices were little changed after last week’s rally, with end-users in Asia closely watching the situation in Brazil after authorities cracked down on striking truckers on Sunday to ease supply disruptions.
“There is strong demand for U.S. soybean products which could result in tight supplies as there is uncertainty over Brazilian supplies,” said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.
“Cold weather in the U.S. Plains is being watched, the March contract could break above $5.20 a bushel again.”
Chicago Board Of Trade March wheat rose 0.5 percent to $5.20 a bushel, having closed up nearly 3 percent on Friday when prices hit a one-week high of $5.23 a bushel.
March soybeans were almost flat at 10.30 a bushel, while March corn fell 0.3 percent to $3.83-1/4 a bushel.
The wheat market is being underpinned by concerns over freezing temperatures damaging wheat in the U.S. Plains.
Temperatures fell as low as minus 7 degrees Fahrenheit (minus 22 Celsius) in parts of south-central Nebraska and north-central Kansas, said Andy Karst of World Weather Inc.
Traders in the United States said they were most concerned about the Nebraska wheat crop given a lack of snow cover.
Supply disruptions in Brazil dominated the soybean market.
Brazilian police cracked down on striking truckers on Sunday, arresting protesters and ending roadblocks in all but two states after demonstrations turned violent and slowed food deliveries in Latin America’s largest economy.
By Sunday evening, there were only 12 partial roadblocks nationwide, down from 52 on Saturday, the federal highway police said in a report on the 12th consecutive day of strikes over rising freight costs.
Large speculators cut their net long position in CBOT corn futures in the week to Feb. 24, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and trimmed their net short position in soybeans.
