US MIDDAY: wheat stays up

29 Nov, 2012

US wheat futures rose for the seventh straight session on Wednesday, as commercial buying at the opening of pit trading in Chicago triggered a rebound from an early dip even as other commodity markets tumbled. Soyabean futures eased the first time in four sessions and corn the first time in three sessions, as traders locked in profits the day after contracts posted the biggest gains in a month.
The price drops for soya and corn were not as steep as those seen by other commodities such as gold and crude oil. The Thomson Reuters Jefferies CRB index of 19 commodities falling to nearly a two-week low on fears of a looming debt crisis in the United States.
"We're really positive considering the outside market pressure," said Don Roose, president of grain brokerage US Commodities in West Des Moines, Iowa. Drought conditions in the southern US Plains hard red winter wheat belt propped up wheat futures, with benchmark Chicago Board of Trade December wheat rising 3-3/4 cents to $8.76-3/4 per bushel, a more than two-week high after earlier hitting a low of $8.64-3/4.
The crop is in the worst condition in history as it enters winter dormancy, the US Agriculture Department said this week. On Tuesday, wheat futures rose about 3 percent, the largest daily gain since September. Corn for December delivery was a 1/2 cent lower at $7.59-1/2 per bushel as of 10:08 am CST (1607 GMT) after trading as low as $7.54-3/4. January soyabeans were 3-1/4 cents lower at $14.46.

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