US wheat futures rose more than 2 percent on Monday, extending gains after news of strong buying by Iran boosted the market. Soy was up on concern over a turn to hotter weather in August when the US crop will be setting pods. Chicago Board of Trade September delivery wheat rose as much as 2.3 percent per bushel by 2324 GMT, after rising 3 percent in Chicago trade on Friday.
US wheat prices rose following news Iran may have bought up to 3.0 million tonnes of wheat of the 5.0 million it needed to buy in the marketing year ending in March 2009. Anticipation of a big increase in world wheat output in 2008 has driven wheat prices 40 percent below the record high set in late February and the market is now attempting to stabilise and recover from that steep slide. Corn for September delivery delivery advanced 1.91 percent, or 11 cents.
Good crop weather in the US Midwest continued to act as an anchor on corn and soybean prices but some concern about a turn to hotter weather in August when the US soybean crop will be setting pods boosted soy. Oil dropped $2 to a fresh seven-week low on Friday, extending a decline that has knocked more than $24 off crude in two weeks as high fuel prices continue to batter demand.