Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

GRAINS-U.S. wheat rises ahead of USDA report

Published 08/11/2010, 08:25 AM
Updated 08/11/2010, 08:28 AM
CL
-
LWBc1
-

* Wheat rises as investors take positions before U.S. report

* Market eyes higher U.S. exports, Black Sea crop damage

* U.S. corn, soy ratings unchanged despite heat

* Coming Up: USDA output, stocks report; 1230 GMT Thursday

(Adds European markets, previous SINGAPORE)

By Michael Hogan

HAMBURG, Aug 11 (Reuters) - U.S. wheat futures rose on Wednesday, breaking a three-session losing streak, ahead of a key U.S. Department of Agriculture (USDA) report expected to estimate lower global output after Black Sea crop damage.

"People have taken positions ahead of the USDA report but some early day gains were given up because of profit-taking," one trader said.

U.S. wheat rose 2 percent on Wednesday in the Asian session, but gave up some of the early gains as trading remained nervous, with traders citing some adjustments ahead of Thursday's world crop report from the U.S. Department of Agriculture.

"The funds are booking some profits before the USDA report," one French dealer said.

On Wednesday, CBOT wheat for September delivery was up 0.2 percent to $696-1/4 per bushel by 1117 GMT after sliding 2.5 percent in the previous session.

Chicago Board of Trade wheat futures are up 66 percent from the June low of $4.25-½ a bushel despite losses since the market fell from a two-year peak on Friday.

Paris wheat futures were lower on Wednesday as the French market continued to track U.S. prices as the two origins vie for knock-on demand created by Russia's export ban.

The French market was awaiting results of tenders issued by Egypt and Algeria to see whether French wheat would secure more business after a 240,000-tonne sale to Egypt last weekend.

Paris benchmark November milling wheat on Euronext fell 0.5 euros to 206.50 euros a tonne by 1117 GMT, with the market testing support at 205 euros ahead of a major threshold at 200 euros.

Reaction to news from Ukraine, where the government is due to decide on Wednesday whether to introduce export quotas, was muted with dwindling exports from both Ukraine and Kakazhstan already anticipated.

"It's gone from being informal news to official news," the dealer said of potential export curbs in Ukraine.

NERVOUS MARKETS

The drought in eastern Europe -- which has boosted U.S. wheat futures since the end of June -- shows no sign of respite, with a senior Russian weather official predicting on Tuesday that the heat in most parts of European Russia is likely to continue over the next 10 days.

"The global grain markets remain very nervous and any further hot and dry conditions in Russia continue to unsettle the market," said Garry Booth, a trader with MF Global Australia. "Export numbers coming out of the U.S. have been a good surprise."

Private exporters reported the sale of 120,000 tonnes of U.S. wheat, mainly to China and Egypt, the U.S. Department of Agriculture said on Tuesday.

China's National Bureau of Statistics warned lower global wheat output could translate into inflationary pressure for the world's top producer and consumer of the grain.

Analysts were expecting the USDA's forecasts for U.S. wheat, corn and soybean production to rise when it releases its monthly estimate at 1230 GMT on Thursday.

But U.S. ending stocks were seen falling as global crop woes will force end users to look to the United States to satisfy their supply needs.

U.S. corn and soybean prices were little changed.

CBOT September corn was down 0.1 percent at $3.93 a bushel and August soybeans were up a marginal 0.2 percent to $10.39-1/4 a bushel.

Soybeans and corn futures, which have been tracking gains in the wheat market, remain under pressure from expectations of large crops in the United States.

* Prices as of 1117 GMT Product Last Change Percent Move End 2009 Ytd Percent Paris wheat 206.50 -0.50 -0.24 131.25

57.33 London wheat 146.00 -2.75 -1.85 106.50 37.09 Paris maize 179.50 -3.75 -2.05 135.00 32.96 Paris rape 372.25 -2.50 -0.67 287.50 29.48 CBOT wheat 696.25 1.50 +0.22 541.50 28.58 CBOT corn 393.00 -0.50 -0.13 414.50 -5.19 CBOT soybeans 1039.25 3.00 +0.29 1039.75 -0.05 Crude oil 79.54 -0.71 -0.88 79.36 0.23 Euro/dlr 1.30317 * Paris futures prices in Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by James Jukwey)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.