SINGAPORE/PARIS: Chicago wheat rose on Monday, with prices underpinned by patchy rains bringing only limited relief to the drought-hit US winter crop.
Soybeans gained ground following two sessions of falls on expectations that US farmers will boost planting in the weeks ahead with forecasts for warm and dry weather, while corn prices rose around half a percent.
The most-active wheat contract on the Chicago Board of Trade had gained 0.2 percent to $4.78.1/4 a bushel by 1119 GMT, after earlier hitting its lowest since April 9 at $4.75. Wheat closed the previous session down 2.8 percent.
Soybeans were up 1 percent at $10.41-1/2 a bushel, after ending down 0.8 percent on Friday, and corn gained 0.45 percent to $3.87-1/4 a bushel, having ended the previous session down more than 3 percent.
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Wheat came under sustained pressure last week as forecasts for widespread rains eased fears about potential yield losses after dry weather across key producing regions.
But patchy rain over the weekend failed to deliver widespread relief to crops.
“In the end, these rains were less abundant than expected, and could somewhat support the markets,” French consultancy Agritel said.
Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said: “The weekend storm coverage was erratic. The heaviest rain was largely in the areas that needed it least.
“Some of the driest areas though did get some useful rain. Weather forecasters, looking further ahead, do not expect much follow up in those dry regions.”
Spring wheat, corn and soybean prices are likely to face pressure as warm and dry weather results in a rapid pace of planting in the United States.
Concerns about a trade spat with China threatening US exports also set a bearish tone across the agricultural sector.
Several ships carrying cargoes of sorghum from the US to China have changed course since Beijing imposed hefty anti-dumping deposits on US imports of the grain, trade sources and a Reuters analysis of export and shipping data showed.
Large speculators cut their net long position in CBOT corn futures in the week to April 17, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
Source: Brecorder
