US wheat futures rose early on Wednesday for a second straight day of gains, on hopes that recent price declines have drummed up interest for US supplies on the export market, traders said. Soyabean futures also firmed, supported by delays in getting recently harvested crops in Brazil to ports. Corn was mixed, with the front-month contract edging higher on short-covering as the delivery period nears.
Deferred corn contracts weakened amid expectations of large plantings in the United States in the spring, followed by a strong harvest in the fall. Wheat was the leader, with traders saying cash supplies on the export market were actually cheaper than corn, which boosted demand from overseas buyers looking for animal feed.
"It seems to me that we are close to (getting), or have already gotten, some business on wheat," said Bill Gentry, a broker with Risk Management Commodities. "That's giving you an underlying bullish tone." At 10:00 a.m. CST (1600 GMT), soft red winter wheat futures for March on the Chicago Board of Trade were up 5-1/2 cents at $7.11-1/4 a bushel.
At the Kansas City Board of Trade, March hard red winter wheat was 5-3/4 cents higher at $7.38-1/2 despite improving crop prospects following heavy snowstorms in the US Plains.
CBOT March corn was up 1 cent at $7.06 a bushel. "US wheat is looking highly competitive on world markets and this is likely to generate more demand for export sales," said Ole Hansen, head of commodity strategy at Saxo Bank. CBOT March soyabeans were up 3-1/2 cents at $14.51-1/4 a bushel. Soyabean prices received additional support on bargain hunting after falling for three days in a row and shedding 2.7 percent of their value during the losing streak.
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