US wheat futures rallied for the third day in a row on Wednesday, jumping 1.9 percent to their highest level in more than five weeks on concerns about production shortfalls in top exporters like Argentina and Australia, traders said. Corn also was higher, pulled up by the wheat market, while soyabean futures weakened, briefly breaking below $15 a bushel for the first time in three weeks on expectations that the US government will raise its estimate of the US crop in its monthly report on Friday.
Wheat has risen 3.2 percent so far this week, its biggest three-day rally in more than six weeks. "I think Europe is leading wheat higher. We (US) have wheat coming out our ears but they (Europe) are looking at the Australian and Argentine crop size shrinking, and there are quality concerns in some European wheat, so I think Europe is leading the wheat flat price higher," said Roy Huckabay, analyst for Linn Group.
At 10:00 am CST (1600 GMT), Chicago Board of Trade December wheat futures were up 14 cents at $8.91 a bushel. Prices peaked at $8.97 a bushel, their highest level since October 1. Speculative funds held a net short position on wheat futures, which left prices prone to rallies as the non-commercial traders covered those bearish bets. European benchmark January wheat in Paris was up 1.7 percent at 276.00 euros a tonne.
CBOT December corn was up 7 cents at $7.48 a bushel. CBOT January soyabean futures were down 3-1/4 cents at $15.12-1/4 a bushel but well above their intraday low of $14.99. CBOT soyabeans have fallen nearly 16 percent from the record high of $17.94-3/4 hit in early September, when farmers feared that the drought had devastated their crop.