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Grain futures were mixed on Monday, with wheat rebounding from the lowest level since July 2010, after Egypt, the worlds top wheat importer, purchased a large amount of US grain in a tender. Soybeans declined, while corn traded little changed.

Wheat futures for settlement in March rose by 0.52% to trade at $5.7238 per bushel by 14:50 GMT. Prices jumped to a session high of $5.7588, while day’s bottom was touched at $5.7012 per bushel. On January 10th, prices touched $5.6088 per bushel, the weakest level since July 2010. Last 5-day period, wheat registered a six consecutive week of declines, the longest losing streak since October 2011. The grain slumped 22% in 2013, the largest annual decline since 2008, on expectations for a record-high global output of 711.42 million metric tons, according to data by the USDA.

Wheat prices were supported after the announcement the Egyptian state-run buying agency, the General Authority for Supply Commodities agreed on January 11th to buy 55 000 metric tons of US soft red winter wheat. Jordan is also seeking to buy 100 000 tons of the grain in a tender on January 15th.

Weather forecasting models were also supportive, pointing to mostly favorable conditions in the Midwest and the Southern Plains. DTN reported on January 10th that temperatures in the Midwest will be mostly above normal during the next 10 days. On Friday, a mixed precipitation event over southern and eastern areas will favor the winter wheat. Meanwhile, according to the website no damaging cold is expected in the next 10 days over the Southern Plains and the wheat crop is generally in good condition.

Elsewhere on the grains market, soybeans futures for settlement in March fell by 0.53% to trade at $12.7163 per bushel by 14:53 GMT. Prices swung between day’s high and low of $12.7862 and $12.6662 per bushel respectively. On January 2nd prices touched $12.6262 per bushel, the lowest since November 8th. The oilseed settled last year 8.5% lower.

Corn little changed

On the Chicago Board of Trade, corn futures for March delivery traded little changed at $4.3338 a bushel by 14:51 GMT, adding 0.04% for the day. Futures held in a range between day’s high and low of $4.3538 and $4.3062 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010. The grain lost nearly 40% in 2013, the steepest annual drop on record, on projections that the global output will surge to 964.3 million tons in the 2013-2014 season, boosted by record production in the US, the world’s top producer.

DTNs January 10th forecast called for mostly favorable weather in Brazil, while at the same time corn and soybeans may be stressed in Argentina. Frequent episodes of scattered showers and thunderstorms will favor the developing soybeans in Rio Grande do Sul and Parana. Mostly favorable conditions are also expected for filling soybeans in Mato Grosso as rainfall will recharge the soil moisture.

However, in Argentina scattered showers and thunderstorms in the major corn and soybeans areas seem to have limited coverage. During the next few days, temperatures will be trending lower during the next few days before hot weather returns next week. The corn, which enters its main pollination period, may be stressed by the hot temperatures. Episodes of hot and dry weather could also restrain the planting of double-cropped soybeans in Buenos Aires and La Pampa regions.

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