NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

U.S. wheat futures rise to 4-week high on crop concerns

Published 02/17/2015, 06:17 AM
© Reuters.  U.S. wheat hits 4-week high on adverse weather conditions
ZS
-
ZW
-
ZC
-

Investing.com - U.S. wheat futures rose sharply on Tuesday to hit the highest level in almost four weeks as forecasts showing adverse weather conditions across the U.S. grain belt supported prices.

On the Chicago Mercantile Exchange, US wheat for March delivery hit a session high of $5.4113 a bushel, the most since January 22, before trading at $5.4088 during U.S. morning hours, up 7.67 cents, or 1.44%.

Grain markets were closed on Monday for the Presidents Day holiday. On Friday, US wheat for March delivery tacked on 2.6 cents, or 0.52%, to close at $5.3560 a bushel.

Updated weather forecasting models pointed to frigid weather spanning from the southern Great Plains region to the Northeast through February 19.

Colder-than-normal weather will then linger in the mid-Atlantic states through the Ohio Valley from February 20 until the end of the month, potentially threatening yields and reducing the quality of the harvest.

Despite gains, wheat has been under heavy selling pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Meanwhile, US soybeans for March delivery inched up 6.28 cents, or 0.63%, to trade at $9.9688 a bushel after touching a daily peak of $9.9820, the highest level since February 3.

US soybeans for March delivery rose 5.4 cents, or 0.56%, on Friday to settle at $9.9600 a bushel amid indications of strong demand for U.S. supplies.

U.S. farmers sold 746,200 tons of soybeans last week according to the Department of Agriculture, above expectations.

The U.S. National Oilseed Processors Association is due to release its monthly report later in the day, as investors assess the strength of demand for the oilseed.

Despite recent gains, prices of the oilseed remain vulnerable amid optimism over crop prospects in Brazil and Argentina.

Elsewhere on the Chicago Board of Trade, US corn for March delivery advanced 2.27 cents, or 0.59%, to trade at $3.8988 a bushel. On Friday, US corn for March delivery eased up 0.6 cents, or 0.19%, to end at $3.8800.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.