US wheat prices reversed early losses to rise for a sixth straight session early on Tuesday amid low yields from the spring wheat harvest. The turnaround in wheat futures also helped corn and soyabean futures to pare losses, as the grain market shook off early pressure from a slowdown in Europe's economic growth, led by Germany.
Traders said harvest delays in US spring wheat territory and reports of low yields helped fuel gains. "Yield reports are low and it's also due to the rains in North Dakota that are delaying harvest," said Kurt Legred, a cash merchant with Minneapolis-based trade house Country Hedging said.
Grain markets were underpinned by the tight outlook for corn and continued uncertainty about the weather impact on crops in parts of the United States and Europe. A weekly report from the US Department of Agriculture, issued after the market closed on Monday, rated the corn crop 60 percent good to excellent, unchanged from a week ago and in line with the average of estimates given by eight analysts.
Soyabean ratings were also unchanged at 61 percent good to excellent, matching analysts' estimates. The impact of heat led the USDA to slash its corn and soya outlook in monthly estimates last Thursday. Crop weather in the US Midwest is forecast to remain conducive to plant development over the next week, while hot weather will return to the drought-stricken Plains, an agricultural meteorologist said on Tuesday. At 11:08 am CDT (1608 GMT), Chicago Board of Trade nearby corn was up 2-1/4 cents at $7.09-1/2, nearby soya was down 1 cents at $13.42-1/2, and September wheat was up 16 cents at $7.28-1/2.
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