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U.S. wheat futures extend gains to move further off 4-month low

Published 02/04/2015, 06:26 AM
© Reuters.  U.S. wheat extend gains as short-covering rally continues
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Investing.com - U.S. wheat futures rose for the second consecutive session on Wednesday to hit a one-week high, as a short-covering rally continued after prices fell to four-month lows earlier in the week.

On the Chicago Mercantile Exchange, US wheat for March delivery traded at $5.1813 a bushel during U.S. morning hours, up 4.12 cents, or 0.8%, after hitting a session high of $5.2163, the most since January 27.

A day earlier, wheat surged 21.0 cents, or 4.26%, to settle at $5.1360 as investors returned to the market to seek cheap valuations in wake of recent losses.

Prices of the grain fell to $4.9220 on Monday, the lowest level since October 10.

Wheat has been under pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Meanwhile, US corn for March delivery tacked on 0.17 cents, or 0.05%, to trade at $3.8538 a bushel.

On Tuesday, US corn for March delivery hit $3.8840, the highest level since January 22, before ending at $3.8560, up 16.0 cents, or 4.33%.

Corn touched $3.6560 last Friday, the weakest level since November 20 as reduced demand for corn-based ethanol and ample supplies in the U.S. weighed.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery shed 3.62 cents, or 0.37%, to trade at $9.8338 a bushel.

The March soybean contract climbed to $9.9900 on Tuesday, a level not seen since January 15, before closing up 27.4 cents, or 2.87%, at $9.8700.

Prices of the oilseed hit $9.5500 last Friday, a level not seen since October 21 amid concerns over weakening demand from China and as optimism over crop prospects in Brazil and Argentina underlined worries over ample global supplies.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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