Wheat near 1-month low amid easing concerns over U.S. crops

Investing.com - U.S. wheat futures traded near a one-month low on Thursday, amid receding concerns about damage to crops from frigid temperatures in the U.S. Midwest and Great Plains-region.

On the Chicago Mercantile Exchange, US wheat for March delivery fell to a session low of $5.7613 a bushel, the weakest level since January 2, when futures hit a one-month low of $5.7487. Prices were last at $5.7738 during U.S. morning hours, down 1.82 cents, or 0.32%.

A day earlier, US wheat for March delivery plunged 12.2 cents, or 2.07%, to close at $5.7940.

Updated weather forecast models called for frigid temperatures in the Midwest in the next three-to-five days. However, extended forecasts showed higher readings were expected in the area from January 16 through January 20.

Meanwhile, US corn for March delivery traded at $3.9863 a bushel, up 2.02 cents, or 0.51%.

On Wednesday, US corn for March delivery tumbled 8.6 cents, or 2.16%, to settle at $3.9620 a bushel, tracking heavy losses 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 picked up 3.3 cents, or 0.31%, to trade at $10.5963 a bushel, after hitting a daily peak of $10.5988.

US soybeans for March delivery hit $10.6100 on Wednesday, the most since December 29, before settling at $10.5620, up 0.4 cents, or 0.05%.

Agricultural meteorologists said that a period of dry weather was forecast to descend across key grain-growing regions in Argentina until mid-January, potentially threatening yields and reducing the quality of the harvest.

Argentina is a major soybean exporter and competes with the U.S. for business on the global market. Lower crop prospects in the South American country could increase demand for U.S. supplies.

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