GRAINS-Wheat climbs on deteriorating crop circumstances

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GRAINS-Wheat climbs on deteriorating crop circumstances


By Christopher Walljasper

CHICAGO, July 20 (Reuters)Chicago wheat futures climbed on Tuesday to a two-month peak after official information underscored poor circumstances for drought-hit U.S. spring wheat.

Chicago corn gained, as a lower-than-expected weekly crop ranking centered consideration again to dry circumstances in components of the Midwest.

Soybeans rebounded after being pressured by falling crude oil costs on Monday, underpinned by heat and dry climate forecast throughout the U.S. Midwest forward of the oilseed’s key summer season development interval. O/R

Essentially the most lively wheat futures on the Chicago Board of Commerce Wv1 gained 2-3/four cents to $7.00-1/2 per bushel, after reaching their highest stage since Could 18 at $7.18.

CBOT corn Cv1 added 13-1/2 cents to $5.65-3/four per bushel, whereas soybeans Sv1 gained 15-3/four cents to $13.88-1/2.

The U.S. Division of Agriculture (USDA), in a report launched after Monday’s market shut, rated 11% of U.S. spring wheat pretty much as good or wonderful, down from 16% every week earlier and beneath analysts’ common estimate of 15%.

“That crop’s simply being torn aside,” stated John Zanker, market analyst at Danger Administration Commodities.

The USDA final week projected that U.S. spring wheat manufacturing would shrink to a 33-year low.

International manufacturing considerations additionally supported wheat costs, with Kazakhstan limiting exports of barley, wheat and rye due to drought, whereas Russian harvest estimates dropped after disappointing yields.

U.S. corn and soybean circumstances have weathered latest dryness, however danger of injury stays excessive at a time when provide is in sharp focus.

“We want an enormous crop,” stated Karl Setzer, commodity danger analyst with Agrivisor, noting that even a small discount in corn manufacturing might imply tight shares. “Strain on the crops is giving us some value help.”

The USDA left unchanged its good/wonderful rating for U.S. corn at 65%, wanting an analyst consensus of 66%. It raised the soybean ranking by 1 share level to 60%, according to expectations.

(Reporting by Christopher Walljasper; Further reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Modifying by Sandra Maler)

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