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Wheat futures extend rally as U.S. cold blast threatens crops

Published 01/06/2015, 06:45 AM
© Reuters. Wheat rises for second day as U.S. cold blast threatens crops
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Investing.com - U.S. wheat futures rose for the second consecutive session on Tuesday, amid mounting concerns about damage to crops from unusually cold weather conditions in the U.S. Midwest and Great Plains-region.

On the Chicago Mercantile Exchange, US wheat for March delivery jumped 4.65 cents, or 0.79%, to trade at $5.9425 a bushel during U.S. morning hours, after hitting a daily peak of $5.9813, the most since December 31.

A day earlier, US wheat for March delivery rose 7.6 cents, or 1.33%, to settle at $5.8800 a bushel.

According to agricultural meteorologists, frigid temperatures are expected to push into the U.S. Midwest, potentially threatening yields and reducing the quality of the harvest.

Meanwhile, US corn for March delivery traded at $4.0813 a bushel, up 2.12 cents, or 0.52%.

US corn for March delivery rallied 10.2 cents, or 2.59%, on Monday to end at $4.0600 a bushel, tracking strong gains in wheat.

Wheat and corn prices are linked because both can be used as animal feed.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery dipped 1.57 cents, or 0.15%, to trade at $10.4363 a bushel.

On Monday, US soybeans for March delivery surged 37.6 cents, or 3.75%, to close at $10.4520 a bushel, as investors returned to the market to seek cheap valuations in wake of recent losses.

The March soybean contract tumbled 46.1 cents, or 3.82%, last week, the biggest weekly loss in three months, amid indications of bumper crops in the U.S. and South America.

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

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