US wheat and corn futures extended gains to set multi-month highs on Friday on follow-through buying after the US Department of Agriculture slashed domestic stockpile estimates in a monthly report on Thursday. Soybeans also were higher as investors defended their net long position despite expectations for a record-large harvest in top producer Brazil.
Chicago Board of Trade March wheat was up 5-1/2 cents at $4.49 per bushel, the highest on a continuous chart since June 28, at 11:25 am CST (1725 GMT). Wheat was on pace to rise 4.3 percent for the week in what would be the biggest such gain since October. Farmers were selling wheat to take advantage of the higher prices, Christopher added.
The USDA cited increased wheat export shipments to support its estimate of smaller stocks. The government cut its corn supply outlook due to increased use in ethanol production and held its US soybean forecast steady. CBOT March corn was up 4-1/2 cents at $3.74 a bushel, its highest since July 16, and was on pace to gain 2.4 percent for the week.
Corn futures were holding above their key 200-day moving average. "The corn market, technically speaking, made a good trade when they took out the 200-day," Christopher said. CBOT March soybeans were up 7-3/4 cents at $10.58-1/4 per bushel after reaching a 2-1/2 week high of $10.63-1/2. They were on track to show a rise of 2.9 percent this week.
The USDA cut its estimate of world wheat ending stocks for 2016/17, largely due to reduced harvest estimates for India and Kazakhstan, although global inventories would still be at a record. In Europe, March milling wheat on Euronext reacted to Thursday's close in Chicago to extend gains and touch its highest since August at 172.75 euros a tonne.