Grain futures were mixed on Wednesday, with wheat advancing amid speculation chilly temperatures could hurt US crop. Meanwhile, corn also advanced, while soybeans decreased.
On the Chicago Board of Trade, wheat futures for settlement in March added 0.12% to trade at $5.6338 per bushel by 15:13 GMT. Prices jumped to a session high of $5.6662, while day’s bottom was touched at $5.6162. Yesterday prices touched $5.6088 per bushel, the same level as on January 10th and the weakest since July 2010.
Wheat settled last 5-day period 0.9% lower, which was a seventh consecutive weekly decline, the longest losing streak since October 2011. The grain continued last year’s downward trend, when it slumped 22%, marking the largest annual decline since 2008, on expectations for a record global output of 712.7 million tons, according to data by the US Department of Agriculture.
“Right now winter kill is still potentially an issue,” said Matt Ammermann, a risk management consultant with INTL FCStone in London, cited by Bloomberg. His words come after it became clear that the snow cover may be insufficient to protect the winter wheat from freezing, if temperatures continue to edge lower.
DTN’s January 22nd forecast called for potentially harmful conditions as the latest cold outbreak may reach the northernmost red winter wheat areas of the Midwest. However, the snow cover will probably protect the crop from the freezing temperatures. Meanwhile, the website reported that the coldest of the new Arctic outbreak seems to stay east of the key Southern-Plains wheat-growing areas. A secondary round of cold weather early next week bears watching, but for now it is not expected to be of much concern.
Elsewhere on the grains market, soybeans futures for settlement in March lost 0.16% to trade at $12.7838 per bushel by 15:36 GMT. Prices touched a session high at $12.8588 per bushel, while day’s low stood at $12.7612 per bushel. On January 16th prices touched $13.2988 per bushel, the strongest level since December 27th. However, the oilseed settled last year 8.5% lower.
Corn advances
On the Chicago Board of Trade, corn futures for March delivery increased by 0.62% to trade at $4.2763 a bushel by 15:33 GMT. Futures held in a range between day’s high and low of $4.2862 and $4.2488 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.
The grain settled last week 1.7% lower after it lost nearly 40% in 2013, the steepest annual drop on record amid expectations the global output will surge to 964.3 million tons in 2013-2014 season, boosted by record production in the US, the world’s top producer.
DTN reported on January 22nd that a new cold front is expected to move into Argentina on Wednesday through Friday, bringing heavy, possibly severe storms. The rainfall will ease stress to corn and soybeans crops, but at the same time some local flooding may occur. However, the rain will be much more beneficial, offsetting most of the negative effects of the storms.
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