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U.S. wheat holds near 5-month high on Russia export outlook

Published 12/01/2014, 06:55 AM
© Reuters. U.S. wheat futures trade near 5-month high on Russia export speculation
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Investing.com - U.S. wheat futures held near a five-month high struck in the previous session on Monday, amid speculation Russia will limit its exports of the grain.

On the Chicago Mercantile Exchange, US wheat for March delivery dipped 1.52 cents, or 0.26%, to trade at $5.7688 a bushel during U.S. morning hours.

US wheat for March delivery hit $5.8100 a bushel on Friday, the most since July 7, before settling at $5.7840, up 15.6 cents, or 2.8%.

Russia's Veterinary and Phytosanitary Surveillance Service said Friday that it was introducing new regulation to make sure the country has enough grain for domestic use.

Russia, the world's third-largest wheat exporter, has shipped approximately 14 million tons of wheat so far in the 2014-15 marketing season, which started on July 1.

Lower wheat exports from Russia could boost demand for U.S. supplies, which is the world’s biggest exporter of the grain.

Meanwhile, US corn for March delivery traded at $3.8388 a bushel, down 4.12 cents, or 1.06%. Prices lost 2.6 cents, or 0.7%, on Friday to close at $3.8860.

Nearly 94% of the U.S. corn harvest was completed as of last week, according to the USDA, compared to 89% a week earlier and above the five-year average of 92% for this time of year.

According to the agency, the U.S. will produce 14.407 billion bushels this year, an all-time high.

Elsewhere on the CBOT, US soybeans for January delivery tacked on 0.55 cents, or 0.05%, to trade at $10.1575 a bushel. Prices of the oilseed tumbled 31.0 cents, or 2.96%, on Friday to settle at $10.1600 a bushel.

Approximately 97% of the U.S. soy harvest was completed as of last week, up from 94% in the preceding week. The USDA estimated that this year's soybean harvest will reach a record 3.958 billion bushels.

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

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