US MIDDAY: wheat eases

October 05, 2013

US wheat
US wheat

US wheat futures edged lower on Friday but were hovering near a 3-1/2 month high and headed for their third straight weekly gain amid tightening global supplies and strong demand. Soyabean and corn futures were each narrowly higher in light volume at the Chicago Board of Trade, bolstered by rains that delayed harvest in the United States.

The wheat crop in major exporter Ukraine may decline by a third in 2014 due to heavy rains during the planting season, the country’s agriculture minister said. Rains earlier this year damaged the wheat crop in top grower China, while frost hampered wheat in Argentina and Brazil. All this led to increased export demand from the United States and Canada.

Benchmark CBOT December wheat was 1-1/4 cents lower at $6.88 per bushel at 10:33 am CDT (1533 GMT), on pace for a weekly gain of about 0.5 percent. Gains of more than 9 percent during the last three weeks are the biggest in more than a year. CBOT December corn edged 2 cents higher to $4.41-1/4 but was still near its three-year low from earlier this week, pressured by the ongoing harvest of a record US crop.

Soyabeans for November delivery gained 3-1/4 cents to $12.91-1/2, just above their recent 19-month low. Corn was supported in part by a correction in the closely monitored wheat-corn spread. Wheat earlier this week hit a premium of $2.50 per bushel of corn – the biggest since September 2010. Corn’s big discount will lead more animal feeders to turn to that grain instead of wheat, which they used heavily earlier this year. Courtesy: Reuters

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