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U.S. wheat rallies to 3-month high amid crop concerns

Published 11/26/2014, 06:13 AM
U.S. wheat hits 3-month high as frigid weather threatens crops
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Investing.com - U.S. wheat futures rallied to a three-month high on Wednesday, 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 $5.6538 a bushel, a level not seen since August 29.

Prices last traded at $5.6463 a bushel during U.S. morning hours, up 6.22 cents, or 1.11%.

A day earlier, prices of the grain rallied 8.2 cents, or 1.5%, to settle at $5.5760, amid speculation frigid weather in the U.S. Midwest will damage the winter-wheat crop.

According to the U.S. Department of Agriculture, nearly 58% of the U.S. winter-wheat crop was rated in "good" to "excellent" condition as of November 23, down from 60% from the previous week and compared to the five-year average of 64%.

Meanwhile, US corn for March delivery traded at $3.9038 a bushel, up 2.98 cents, or 0.77%. Prices hit a daily peak of $3.9088 earlier, the most since July 10.

On Tuesday, corn jumped 7.0 cents, or 1.84%, to close at $3.8720 a bushel, amid indications of robust demand from ethanol producers and animal feed makers.

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 3.48 cents, or 0.33%, to trade at $10.5388 a bushel, the highest level since November 13.

Prices of the oilseed advanced 17.2 cents, or 1.67%, on Tuesday to settle at $10.5100 a bushel on the back of strong demand for U.S. supplies.

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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