By Mark Weinraub
CHICAGO, Nov 19 (Reuters) – U.S. wheat futures rose on Friday, with strong buying interest by importers keeping prices near the multi-year highs hit earlier this week.
Corn and soybean futures dipped but the market was underpinned by strength in the cash market as grain dealers tried to entice U.S. farmers to book sales instead of putting newly harvested crops in storage, traders said.
“You have got the American farmer holding on to a lot of grain,” said Mark Gold, managing partner at Top Third Ag Marketing. “They think prices are going to go up through harvest and into the spring.”
At 10:43 a.m. CST (1643 GMT), Chicago Board of Trade December soft red winter wheat WZ1 was up 3-3/4 cents at $8.23-3/4 a bushel.
Two importer groups in the Philippines are tendering to purchase at least 130,000 tonnes of animal feed wheat, European traders.
The International Grains Council on Thursday cut its forecast for 2021/22 global wheat production, underscoring concern about dwindling stocks.
Heavy rains in Australia have added to supply worries by threatening to damage what has been forecast as a bumper harvest that would help replenish export availability.
“The wheat market therefore remains extremely tight, as the price performance reflects,” Commerzbank said in a note.
CBOT January soybeans SF2 were 1/2 cent lower at $12.64-3/4 a bushel and CBOT December corn CZ1 was down 1 cent at $5.72 a bushel.
Strong demand from ethanol producers and soybean crushers supported futures prices.
“The trade recognizes a hot cash market and ridiculous end-user margins into the end of the calendar year,” StoneX chief commodities analyst Arlan Suderman said in a note to clients.
(Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Emelia Sithole-Matarise and Edmund Blair)
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