US wheat futures rose on Wednesday for the seventh straight session, the longest rally since July, as stronger US export prospects and record-low crop conditions triggered a rebound from an early dip even as other commodity markets tumbled. Rising wheat prices helped lift corn futures to a narrow gain in the third day of gains, while soyabean futures eased the first time in four sessions as traders locked in profits the day after contracts posted the biggest gains in a month.
The price drops in soya 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 fell to a one-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. "Technically, this market is strong. Our dry situation is going to be a question mark all winter." Drought conditions in the southern US Plains hard red winter wheat belt propped up wheat futures, with benchmark Chicago Board of Trade December wheat ending 3 cents higher at $8.76 per bushel, the highest in more than two weeks, 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 edged 1/4 cent higher to settle at $7.60-1/4 per bushel. "Corn traded both sides of unchanged with little news to point at, just a little chart buying offset by December long liquidation," ABN Amro analyst Charlie Sernatinger said in a note to clients.
Gains in corn were capped by weak demand. US ethanol production, which accounts for nearly 40 percent of domestic corn use, declined 1 percent last week in the third straight week of declines. January soyabeans trimmed losses and briefly turned positive before ending 3 cents lower at $14.46-1/4. Investment funds were said to have sold 1,000 soyabean contracts and 3,000 corn contracts while buying 3,000 wheat contracts. Soyabeans were also underpinned by concerns of smaller-than-expected South American production. Rains are forecast for Brazil's soyabean center-west plains this week, meteorologists said.