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Grain futures were mixed on Tuesday, wheat advanced amid potentially harmful weather conditions in the US, the largest exporter of the grain. Meanwhile, corn and soybeans lost ground.

On the Chicago Board of Trade, wheat futures for settlement in March added 0.79% to trade at $5.6788 per bushel by 13:40 GMT. Prices jumped to a session high of $5.6838, while day’s bottom was touched at $5.6412. On January 10th prices touched $5.6088 per bushel, the weakest since July 2010. Last week, the grain settled 0.6% higher, snapping seven weeks of declines, the longest losing streak since October 2008.

Wheat slumped 22% last year, 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.

According to data by the US National Weather Service, the majority of the central and southern Plains, encompassing producing areas from Nebraska to Texas, don’t have any snow cover to insulate wheat crops from freezing cold temperatures.

DTN’s January 27th forecast also called for another round of subzero Fahrenheit cold in the Midwest this week, that may cause some potential damage to any unprotected wheat. According to the website, in the soft winter wheat areas, the snow cover will insulate the crop from the frigid temperatures, but some areas with less snow may be at risk.

Meanwhile, DTN reported that the coldest weather early this week again will occur east of the winter wheat belt. There are slight precipitation chances during the six-to-ten-day period, which will favor the wheat crop. According to the website, some damage to wheat in areas with insufficient snow cover have already occurred, both from low temperatures and very strong winds.

“Concerns that winter kill could damage crops in the U.S. Midwest are keeping prices supported,” said today Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, cited by Bloomberg. However, a global glut may keep “prices in check,” she added.

Elsewhere on the grains market, soybeans futures for settlement in March lost 0.13% to trade at $12.8588 per bushel by 13:41 GMT. Prices touched a session high at $12.8988 per bushel, while day’s low stood at $12.8412 per bushel. The oilseed settled last week 2.3% lower.

Corn loses ground

On the Chicago Board of Trade, corn futures for March delivery declined by 0.11% to trade at $4.3113 a bushel by 13:41 GMT. Futures held in a range between day’s high and low of $4.3238 and $4.3113 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.

The grain settled last week 1.05% higher 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.

Corn prices were pressured following DTN’s January 27th forecast, which called for mostly favorable conditions across three of the top 10 corn producers, Brazil, Argentina and South Africa. In southern Brazil, some beneficial rain and lower temperatures in Rio Grande do Sul and Parana , following last week’s hot weather, will ease some stress on developing crops. However, a return to warmer and drier conditions later this week may bring a new round of stress to crops.

In central Argentina, significant rainfall followed by lower temperatures that have occurred last week eased some stress on developing and pollinating corn and developing soybeans. However, the extreme heat in the previous week may have limited the yield potential, as some of the corn crop was in a reproductive phase.

South Africas key corn areas will experience scattered showers and thundershowers during the weekend. According to DTN, conditions will be mostly favorable for reproductive to filing corn during the observed period.

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