Soft red winter wheat futures on the Chicago Board of Trade climbed to across-the-board contract highs by midsession on Tuesday, buoyed by world wheat production issues and a soaring soyaoil market, traders said. CBOT soyaoil posted a 23-year high amid surging Asian vegoils markets.
French wheat futures hit fresh contract highs on concern about drought in the Black Sea region and a possible Ukrainian ban on grain exports. Signs that the US winter wheat crop was deteriorating were also bullish for CBOT wheat. The US Department of Agriculture late Monday said 53 percent of the crop was rated in good to excellent condition, down from 57 percent the previous week.
"You've got the (US) condition reports from yesterday and you've got the weather in Ukraine drying out again. That got people's attention," Linn Group analyst Roy Huckabay said.
As of 11:45 am CDT, CBOT July wheat was up 12-3/4 cents at $5.33 per bushel after reaching $5.36, above the previous contract top of $5.33-3/4. Deferreds were up 4 to 13 cents, with December up 12 at $5.58-1/2.
Harvest conditions in the US Plains hard red winter wheat belt were improving, with mostly dry weather forecast through Friday, DTN Meteorlogix said. But showers were expected to return this weekend, potentially causing more harvest delays and spreading disease.
USDA said the winter wheat harvest was 10 percent complete in Texas, lagging the five-year average of 26 percent. The Oklahoma harvest was 3 percent complete, behind the five-year average of 23 percent. On the bearish side, the US spring wheat crop was in good shape. USDA said the crop was rated 85 percent good to excellent, up from 79 percent a week ago.
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