Wheat rises

Wheat rises

October 24, 2012: Chicago wheat futures rose for a fourth straight session on Monday amid expectations a likely export ban in Ukraine would shift overseas buyers to the United States and on concerns about dry weather in the southern Plains bread basket. Soyabeans rallied to recoup Friday’s losses as the largest harvest in the world began to wind down in the United States. Farmers were storing much of their crop, helping to strengthen prices at some Midwest cash markets.

Cash grain merchandisers said basis bids for soyabeans in Indiana jumped 14 cents per bushel, while in Iowa they climbed 5 cents. The market was also supported by strong export demand, led by China, despite concerns over a slowdown in its growth. CBOT December wheat gained 0.7 percent to close at $8.78-1/4 a bushel. November soya climbed 0.8 percent to $15.46-1/2 a bushel and December corn gave up the day’s gain to slip 0.03 percent to $7.61-1/4 a bushel.

CBOT November soyabeans have slumped 14 percent, or about $2.49, from the all-time high of $17.94-3/4 per bushel set on September 4 as timely rains in August boosted yields. That prompted fund managers to cut their bullish bets in the market. Farmers had harvested 87 percent of their corn crop, the US Department of Agriculture’s weekly crop progress report on Monday showed.

Analysts polled by Reuters had expected 89 percent. The soyabean harvest was 80 percent complete, just below expectations for 82 percent. The corn harvest in the top two producing states of Iowa and Illinois was 93 percent and 92 percent complete, respectively. Farmers in Iowa had harvested 96 percent of the soyabean crop, while in Illinois 80 percent was harvested. “Basis values are improving and the market typically finds the lows when we get past 50 percent of the harvest,” said Brian Hoops, president of Midwest Market Solutions.

He was expecting funds to buy corn futures at the Chicago Board of Trade when the December contract breaks the 50-day moving average at $7.73-3/4 a bushel – just about 10 cents above where the contract was trading on Monday morning. “We are just a dime away from funds coming into the corn market,” he added. Prices for CBOT March soyabeans and beyond gained less than the front months because of expectations for a record-large soyabean crop in Brazil, the world’s No 2 exporter, which typically begins hitting export markets in March.


Courtesy: Reuters

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