By Mark Weinraub
CHICAGO, Oct 28 (Reuters) – U.S. wheat futures rallied to multiyear highs on Thursday with concerns about tight global supplies and strong export demand fueling the gains.
MGEX spring wheat hit its highest level since June 2011 on expectations that overseas buyers will soon begin looking to the United States to fill their orders for high-protein wheat.
Winter wheat futures were supported by concerns about the condition of the recently seeded crop as it heads toward dormancy and rainy weather in the eastern U.S. Midwest that may have prevented farmers from seeding as much acreage as they planned.
The most-active Chicago Board of Trade soft red winter wheat contract Wv1 hit its highest level since February 2013 while K.C. hard red winter wheat KWc1 peaked it its highest since May 2014.
“Granted that it is early in the year but there is a lot of wheat that is not very good,” said Mark Schultz, chief analyst at Northstar Commodity.
Gains in wheat supported corn futures, which were on track for their third straight day of gains, with the most-active contract Cv1 peaking at its highest since Aug. 17.
Soybeans were lower, pressured by weakness in crude oil futures that were extending a retreat from a seven-year peak earlier this week. O/R
At 11:27 a.m. CDT (1627 GMT), CBOT December soft red winter wheat WZ1 was up 10-1/2 cents at $7.70-1/4 a bushel, K.C. December hard red winter wheat KWZ1 was up 4 cents at $7.86-3/4 a bushel and MGEX December spring wheat MWEZ1 was 9-3/4 cents higher at $10.31-3/4 a bushel.
CBOT January soybeans SF2 were 5 cents lower at $12.44-3/4 a bushel and CBOT December corn CZ1 was up 5 cents at $5.62-1/4 a bushel.
Additional strength in corn was noted from harvest delays in Europe as well as parts of the U.S. Midwest and China that have created short-term supply concerns despite expectations for large crops.
(Reporting by Mark Weinraub in Chicago Additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Editing by Anil D’Silva and Matthew Lewis)
(([email protected]; +1 313 484 5282; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com