Grain futures mixed, wheat at 1-week high on robust demand

Grain futures were mixed on Wednesday with corn falling but remaining above Tuesdays 38-month low, while wheat rose to a one-week high on signs of strong global demand.

On the Chicago Board of Trade, wheat futures for settlement in December traded at $6.4988 per bushel at 11:14 GMT, down 0.17% on the day. Prices shifted in a range between a one-week high of $6.5225 and days low of $6.4800 per bushel. The grain added 1.2% on Tuesday, the most in more than a month, and extended its weekly advance to nearly 1% on Wednesday.

Futures drew support after top importer Egypt said yesterday it bought 120 000 tons of wheat from Russia and Lebanon will seek to buy another 20 000 tons, while Japan wants to buy the most milling wheat in three months from the U.S., Canada and Australia. The USDA reported that 18.1 million bushels of U.S. wheat were inspected for export in the week ended November 14, up 45% from a week earlier.

The grain was pressured earlier in the week after the USDA reported in its weekly crop progress report that 89% of the plants had emerged as of November 17, surpassing the five-year average of 85% and last year’s 83% during the comparable week.

Prices were however underpinned by a deterioration in the crop condition, which may have been caused by tornadoes on November 17, according to AccuWeather Inc. The USDA said that 7% of the wheat crop was categorized as “Very poor” and “Poor” as of November 17, up from 5% a week earlier. As for the premium grade, 62% of the plants were rated good-excellent, down from 65% in the preceding period.

Gains were however limited on outlook for mostly favorable weather across some of the worlds major growing areas. DTN reported on November 19 that recent scattered showers and and warm weather continued to provide suitable conditions for the pre-winter development of winter wheat, while current dry weather favored field work.

In central Argentina, high temperatures later this week may increase stress to winter wheat and earlier-planted winter crops, DTN said, but lower readings and rainfall were expected to follow during the weekend and early next week. In central China, recent showers provided favorable conditions for developing winter wheat and rapeseed but more rains were needed across the North China Plain.

Corn, soybeans

Corn also fell on the day after it rebounded from a freshly hit 38-month low on Tuesday. Futures for settlement in December traded at $4.1613 per bushel at 11:13 GMT, down 0.35% on the day. Prices shifted in a days range between $4.1888 and $4.1613 a bushel. The grain snapped 5 straight days of losses on Tuesday and rose by 1.5% but extended its weekly decline to nearly 1.4% following Wednesdays retreat.

Futures were pressured after the USDA said on Monday that the U.S. harvest accelerated by 7% last week and remained above the average. As of November 17, 91% of the crop was collected, compared to the five-year average of 86% and last year’s 99% during the comparable period.

Elsewhere on the grains market, soybeans futures for settlement in January stood at $12.7613 per bushel at 11:08 GMT, down 0.02% on the day. Prices held in a range between days high and low of $12.8113 and $12.7550 per bushel. The oilseed fell to a 1-1/2-week low of $12.6838 per bushel on Tuesday and settled the day 0.7% lower, extending its weekly decline to nearly 0.3%.

Soybeans were pressured after the U.S. Department of Agriculture said that American farmers had collected 95% of the crop as of November 17, near the five-year average of 96% and slightly below last year’s 98% during the comparable week.

Also fanning negative sentiment, DTNs November 19 forecast continued to call for dry weather in the Midwest in the short-term, favoring the final stage of the corn and soybean harvest. Thunderstorms were expected to develop later this week.

In Brazil, scattered thunderstorms will provide ample soil moisture for early development of corn and soybeans but will cause some delays to planting. The agency also warned for heavy rains in the Rio Grande do Sul state during the next two days, which may bring floods to some areas.

DTN also reported that scattered showers and thunderstorms are expected through most of the South Africa Maize Triangle region in the next days. This will maintain adequate soil moisture for the development of corn and sugarcane but may also cause some delays to planting.