Chicago Board of Trade wheat prices climbed to a one-month high Tuesday on chart-based buying and fund short-covering as the market digested news that Russia might limit grain exports, traders said. US corn futures firmed in rangebound trade, while soyabeans were lower. At the CBOT as of 12:06 pm CST (1806 GMT), March wheat was up 7 cents at $4.88-1/2 per bushel, its highest level since December 21.
March corn was up 1-3/4 cents at $3.71-1/2 per bushel, while March soyabeans were down 2 cents at $8.78-1/2 a bushel. Wheat made the biggest percentage move, but traders said the rally was technical in nature. Weekly data from the US Commodity Futures Trading Commission last week showed that commodity funds hold a historically large net short position in CBOT wheat, leaving the market open to bouts of short-covering.
Trader were still talking about an Interfax news agency report on Monday that Russia's agriculture ministry was considering tougher grain export limits due to rising pork prices. "Wheat is the only grain showing strength as there are thoughts Russia will impose an export tariff to help control domestic prices. While this may not actually take place, the simple thought it could is generating ideas of elevated demand for US wheat in the global market," said Karl Setzer, risk management team leader for MaxYield Co-operative in Iowa.
Corn firmed, led by wheat. Traders were watching resistance in the March corn contract at $3.72-1/2, Monday's one-month high. Soyabeans were quietly lower, with the March contract staying inside the previous day's trading range. Global equity markets and crude oil prices rose, offering background support to grains and oilseeds.
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