SYDNEY, Dec 4: U.S. Wheat futures rose on Wednesday, extending two-day gains to nearly 1.5 percent on expectations of increased demand for U.S. Supplies and concerns over potential crop-damaging weather.
Corn climbed, drawing support from short-covering, as the grain shrugged of confirmation that China has rejected some U.S. corn cargoes, while soybeans also edged higher on bargain-buying.
Chicago Board of Trade March wheat rose 0.37 percent to $6.70-3/4 a bushel, having closed up 1 percent in the previous session.
‘Russian wheat export prices strengthened despite being bypassed by Egypt, so U.S. Wheat is even more competitive,’ said Vanessa Tan, investment analyst at Phillip Futures in Singapore.
‘There are also forecasts that the U.S. Will experience very cold conditions, which could put up to 5 percent of the winter wheat crop at risk.’
Temperatures are expected to drop below zero (Fahrenheit) Friday and Saturday, and the wheat crop in northwest Kansas and west-central Nebraska could be harmed by the bitter cold.
Egypt bought 60,000 tonnes of Romanian wheat on Tuesday for shipment between Dec. 20 and Dec. 31, the main government wheat buying entity said.
January soybeans rebounded from two straight sessions of losses, firming 0.36 percent to $13.24-1/2 a bushel after closing down 0.11 percent on Tuesday. Losses for the first two days of the this week exceeded 1.2 percent.
March corn rose 0.46 percent to $4.33-1/4 a bushel, having firmed 1.6 percent in the previous session to hit a one-week high.
Corn continued to shrug off pressure from news that China rejected the entry of some U.S. Corn cargo after detecting an unapproved genetically-modified strain.
(agencies)
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