Grain futures were mixed on Friday, wheat headed for its largest weekly advance since September, as the frigid weather in the US, the largest exporter of the grain, harmed crops. Meanwhile, soybeans declined, while corn traded little changed.
On the Chicago Board of Trade, wheat futures for settlement in March added 0.3% to trade at $5.8275 per bushel by 13:24 GMT. Prices jumped to a session high of $5.8438 per bushel, while day’s bottom was touched at $5.8038. Yesterday prices hit $5.9288 per bushel, the strongest level since January 8.
The grain headed for a 5% advance this week, the biggest gain since the period ended September 27. 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 a report by the US Department of Agriculture on February 3rd, about 35% of the wheat in Kansas, which is the largest US producer of winter varieties, was in good or excellent condition, less than the 58% reported on December 30th.
DTN’s February 6th forecast called for bitter cold temperatures to remain over the Midwest. Damage to soft red winter wheat will probably be limited by the snow cover, which should be enough to insulate the crop from the freezing temperatures.
Meanwhile, according to the website, the Southern Plains north and central wheat growing areas will experience well-below normal temperatures during the week. Temperatures may drop significantly below zero Fahrenheit, but the snow cover will probably insulate the crop.
Elsewhere on the grains market, soybeans futures for settlement in March lost 0.08% to trade at $13.2513 per bushel by 13:25 GMT. Prices touched a session high at $13.2838 per bushel, while day’s low stood at $13.2238 per bushel. Yesterday the grain hit $13.3462 per bushel, the strongest level since December 24. The oilseed settled last month 0.45% lower, after it lost 8.5% in 2013.
Corn little changed
On the Chicago Board of Trade, corn futures for March delivery traded little changed at $4.4262 a bushel by 13:27 GMT, adding 0.05% for the day. Futures hit a session high at $4.4262 per bushel, while day’s low was touched at $4.4112 per bushel.
The grain increased 3.05% last month, marking the first monthly advance since May. Corn lost nearly 40% in 2013, the steepest annual drop on record amid expectations the global output will surge to 966.9 million tons in 2013-2014 season, boosted by record production in the US, the world’s top producer.
DTN.com reported on February 6th that the dry and hot pattern in the Brazilian soybeans areas will probably continue at least during the next seven days, depleting soil moisture and increasing crop stress. The dry weather will be beneficial for early harvesting in the northernmost corn and soybeans areas, with an exception of the Sao Paolo area, where filling crops may be affected by drought.
Meanwhile, the website reported that pollinating corn and developing soybeans in north-central Argentina, will be favored by episodes of showers and thunderstorms during the next seven days. However, the website reports that storms will be so strong, that some local flooding may be expected.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
