Grain futures advance, wheat rises as frigid weather in the US seen hurting crops

Grain futures advanced on Monday, wheat rose on speculation frigid weather in the US, the largest exporter of the grain, harmed crops.

On the Chicago Board of Trade, wheat futures for settlement in March added 0.56% to trade at $5.8025 per bushel by 15:50 GMT. Prices jumped to a session high of $5.8138 per bushel, while day’s bottom was touched at $5.7062.

The grain settled last week 4.1% higher, the biggest gain since the period ended September 27. However, 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 10th forecast called for another surge of cold conditions over the Midwest early this week, with the pattern moderating somewhat later in the week. The expected storm will track across the most eastern and southern parts of the region, likely remaining east and south of the Midwest producing areas.

Meanwhile, the website reported that the cold weather trend over the Southern Plains early this week, will give way to warmer conditions late in the week. The warmer weather may favor the dormant wheat crop, but will also melt the protective snow cover.

Elsewhere on the grains market, soybeans futures for settlement in March rose by 0.23% to trade at $13.3450 per bushel by 15:52 GMT. Prices touched a session high at $13.3962 per bushel, the strongest level since December 23, while day’s low stood at $13.2712 per bushel. The oilseed settled last month 0.45% lower, after it lost 8.5% in 2013.

Corn up as well

On the Chicago Board of Trade, corn futures for March delivery traded at $4.4463 a bushel by 15:52 GMT, adding 0.14% for the day. Futures hit a session high at $4.4488 per bushel, while day’s low was touched at $4.4012 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 10 that the extreme heat and dryness in southern Brazil will continue to stress filling soybeans for another 2 or 3 days, after which showers and more seasonal temperatures may develop. The showers will ease some stress on soybeans, but according to the website, significant amounts of rainfall will be needed to prevent further stress to the crop.

Meanwhile, soybeans and corn producing regions in central Argentina will benefit from adequate to surplus soil moisture, except for some areas where local flooding already occurred. According to the website, 93% of the soybeans crop was reported to be in good to excellent condition.