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U.S. wheat trades near 6-month high amid Russia supply concerns

Published 12/02/2014, 07:46 AM
© Reuters.  Wheat futures trade near 6-month high on Russia export outlook
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Investing.com - U.S. wheat futures traded near the highest level in six months on Tuesday, amid ongoing speculation Russia will limit its exports of the grain in the current marketing season.

On the Chicago Mercantile Exchange, US wheat for March delivery dipped 2.02 cents, or 0.33%, to trade at $6.0438 a bushel during U.S. morning hours.

A day earlier, US wheat futures rallied to $6.0760 a bushel, the most since June 10, before settling at $6.0660, up 28.2 cents, or 4.88%.

Wheat prices have rallied nearly 8% in the two sessions since Russia's Veterinary and Phytosanitary Surveillance Service said that it was introducing new regulation to make sure the country has enough grain for domestic use.

The comments fuelled speculation policymakers in Russia will introduce export curbs 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 $3.8938 a bushel, up 0.17 cents, or 0.04%. Prices tacked on 1.0 cent, or 0.26%, on Monday to close at $3.8960.

Nearly 94% of the U.S. corn harvest was completed as of last week, according to the U.S. Department of Agriculture, 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.

The USDA is scheduled to release its crop progress report later in the session. The report comes out one day later than usual due to the Thanksgiving holiday in the U.S. last week.

Elsewhere on the CBOT, US soybeans for January delivery shed 1.1 cents, or 0.11%, to trade at $10.1550 a bushel. Prices of the oilseed inched up 1.0 cent, or 0.1%, on Monday to settle at $10.1700 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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