CHICAGO — U.S. wheat futures rallied on Monday, with K.C. hard red winter wheat hitting a two-year high, on concerns that dry soils will crimp yields in key production areas around the world, traders said.
Corn futures were steady, supported by the strong gains in the wheat market while soybeans eased on seasonal harvest pressure.
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Weakness in the U.S. dollar, which makes wheat relatively less expensive on the global market, contributed to the strength in wheat.
But the wheat market was mainly focused on the weather outlook as growers in the Northern Hemisphere advance through their seeding tasks.
“Dry forecasts for areas still planting winter wheat (US, Russia, Ukraine in particular) are keeping a bid under the market,” Brugler Marketing & Management said in a note to clients.
At 10:28 a.m. CDT (1528 GMT), the benchmark Chicago Board of Trade December soft red winter wheat contract was up 12-1/2 cents at $5.85-3/4 a bushel. On a continuous basis, the most active contract hit its highest level since Jan. 22.
K.C. hard red winter wheat for December delivery was 17-1/4 cents higher at $5.26-3/4 a bushel. The front-month contract hit its highest price since Oct. 17, 2018.
CBOT November soybeans were down 2-3/4 cents at $10.18 a bushel.
The U.S. Agriculture Department on Monday morning said weekly export inspections of soybeans totaled 1.667 million tonnes, topping market forecasts that ranged from 1.05 million to 1.55 million tonnes.
CBOT December corn futures were up 1/2 cent at $3.80-1/4 a bushel.
“The U.S. harvest is progressing well as the weather has been pretty good,” said National Australia Bank’s Phin Ziebell.
USDA will provide its weekly update on the progress of U.S. corn and soybean harvest and wheat planting at 3 p.m. CDT (2000 GMT). (Reporting by Mark Weinraub in Chicago Additional reporting by Michael Hogan in Haumburng and Naveen Thukral in Singapore Editing by David Goodman and Matthew Lewis)