US MIDDAY: wheat up

28 Jun, 2018

US wheat futures rose on Wednesday on bargain buying after a three-session sell-off pushed the Chicago Board of Trade September contract to a one-week low, traders said.
CBOT soyabeans and corn were narrowly mixed, consolidating after recent declines and as investors awaited two key US government crop reports later this week. As of 12:21 p.m. CDT (1721 GMT), CBOT September wheat was up 5-1/4 cents at $4.88-1/4 per bushel. August soyabeans were down 1 cent at $8.72 a bushel and September corn was up 1/4 cent at $3.61-1/2 a bushel. Wheat rose the most, with the September contract up about 1 percent after falling in eight of the previous 10 trading sessions.
The wheat market has faced seasonal pressure from the ongoing US winter wheat harvest and from falling prices in Russia, the world's top exporter, despite poor weather curbing Russian crop prospects. Minneapolis Grain Exchange (MGEX) spring wheat futures bucked the firm trend in CBOT wheat and continued to fall, posting fresh contract lows across the board. The breakdown in MGEX spring wheat reflects improving weather in the northern US Plains and Canadian crop belts.
Soyabean futures were choppy, firming at times on hopes for a thaw in US trade relations with China, the world's biggest soya importer. US President Donald Trump's administration unveiled a plan for a stronger security review process for foreign investors acquiring American technologies, softening its tone from previous remarks indicating it would specifically block Chinese investments. But rallies were capped by generally favorable weather in the US Midwest that has bolstered yield prospects for soyabeans and corn.

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