Soft red winter wheat futures at the Chicago Board of Trade were sharply higher at midmorning on Tuesday on a big drop in Canadian wheat plantings and declining US spring and winter wheat ratings, traders said.
As of 10:45 am CDT (1545 GMT), July wheat was up 18-1/2 cents, or 3 percent, at $6.08 per bushel, with most-active September up 20 at $6.24-1/2. Back months were up 2 to 17 cents, with contract highs hit in March and May 2008. Fimat USA was a noted buyer of 800 September contracts while J.P. Morgan bought 300 September, traders said.
Statistics Canada surprised the market by reporting 2007 Canadian all-wheat plantings at 21.701 million acres, well below trade estimates for 23.4 million and Statscan's March estimate of 23.8 million.
Also bullish was news that India issued a tender to import 1 million tonnes of wheat. CBOT traders said the United States was not likely to get any of the business, but the tender comes at a time of tightening world wheat stocks.
Demand for high-protein wheat amid concerns about the US winter wheat harvest continued to lift MGE July spring wheat against the Chicago market. MGE July was up 24 cents at $6.24 after reaching $6.25, the highest spot price for spring wheat in 11 years.
USDA's weekly crop progress report late Monday showed a decline in US spring wheat ratings. USDA said 79 percent of the crop was rated in good to excellent condition, down from 85 percent a week earlier. The US winter wheat harvest was 22 percent complete, up from 11 percent the previous week but lagging the five-year average of 36 percent.