IKAR in Mass Media

GRAINS-Wheat nears three-month high on global crop reduction

04 августа 2021 года

* Rains in parts of U.S. Midwest weigh on soybeans, corn

* Market eyes U.S. crop condition report due later on Monday (Updates with closing prices)

CHICAGO, Aug 2 (Reuters) - Chicago Board of Trade wheat futures climbed to a near three-month high on Monday, supported by diminished global wheat production assessments and technical buying.

Corn and soybean futures, initially pressured by recent rains, firmed alongside wheat, as forecasts for rain remain patchy in parts of the U.S. Midwest grain belts.

Chicago Board of Trade's most-active wheat contract gained 25-3/4 cents at $7.29-1/2 per bushel, after reaching $7.31-3/4, its highest since May 13.

CBOT's most-active soybeans added 4-1/4 cents at $13.53-1/2 per bushel, while corn gained 14 cents at $5.59-1/4 per bushel.

The wheat market was bolstered by lower global production outlooks and strong demand, with new purchase tenders from importers Egypt and Algeria.

An annual U.S. crop tour last week projected the average spring wheat yield in North Dakota at 29.1 bushels per acre this year, its lowest since 1993, while Russian agriculture consultancy IKAR lowered its wheat forecast for 2021 to 78.5 million tonnes.

"This is a big time technical breakout to the upside in the Kansas City wheat market, and also the Chicago wheat market," said Joe Vaclavik, president of Standard Grain.

Recent rains across the U.S. Midwest pressured corn and soybeans early in the day, though soybeans traded both sides of even as forecasts for additional precipitation remain uncertain.

Traders await direction from the U.S. Department of Agriculture's weekly U.S. crop condition ratings on Monday, and from private estimates of U.S. corn and soy yields, ahead of the USDA's big Aug. 12 world supply/demand report.

"I think the recent rains boosted soil moisture content across the Western corn belt that will allow for maybe crops to stabilize with the dryer pattern expected this week, relative to last week," said Terry Reilly, senior agriculture futures analyst at Futures International.

Source: Reuters | #grain | Comments: 0 Views: 9

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