US wheat futures rose for the third straight trading session on Monday amid concerns about dry weather in key growing areas of the United States limiting crop size and further tightening the world supply situation, traders said.
Benchmark Chicago Board of Trade December soft red winter wheat contract settled up 7-1/2 cents at $7.36-1/4 a bushel. CBOT December's intraday peak of $7.39 a bushel was its highest level since trading at $7.39-3/4 on October 11. Funds bought an estimated net 3,000 to 4,000 contracts.
At the Kansas City Board of Trade, December hard red winter wheat futures settled up 9-1/2 cents at $7.95-1/2 a bushel. MGEX December spring wheat rose 6-3/4 cents to $8.03-3/4 a bushel. Analysts see USDA raising US wheat stocks forecast by 2 million bushels.
USDA reported export inspections of US wheat in the latest week at 15.539 million bushels, below trade estimates for 19 million to 21 million. Dry weather is stressing development of the hard red winter wheat crop in the US Plains. Rain is forecast for the six- to 10-day outlook, but mostly in eastern Plains, away from the large acreage areas.
Dry weather in the US Midwest and Delta continues to stress development of the soft red winter wheat crop. There is a chance for showers over the six- to 10-day period but the outlook is uncertain. Dryness also is stressing late-filling to maturing wheat in west Australia and showers late this week in the Southeast seen unfavourable for maturing wheat and will delay harvest. Israeli private buyer issued tender to buy 30,000 tonnes of feed wheat and 10,000 tonnes of feed barley - traders. Israel 10-year wheat output down on drought - USDA attache.