CHICAGO, Dec 20 (Reuters) – U.S. winter wheat futures rose on Monday on world demand and considerations about poor crop climate in America’s Plains area, whereas considerations about unfavorable dryness in components of South America helped raise U.S. soy futures, analysts mentioned.
Merchants centered on climate situations after crop observers in Kansas mentioned hurricane-force winds that raked the Plains belt final week appeared to trigger various levels of injury to winter wheat. The crop was already combating dry situations. read more
Kansas is the most important producer of exhausting pink winter wheat, which is milled into flour for bread. Globally, demand for high-protein wheat has been robust after poor climate restricted manufacturing.
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Essentially the most-active wheat contract on the Chicago Board of Commerce (CBOT) settled up 2-3/4 cents at $7.77-3/4 per bushel. Ok.C. March exhausting pink winter wheat ended up 3-1/4 cents at $8.13-1/4 a bushel.
CBOT January soybeans jumped 7 cents to $12.92-1/4 per bushel. CBOT corn slipped 2-1/4 cents to $5.91 per bushel, after the most-active contract set a five-month excessive on Friday.
In South America, analysts mentioned there are considerations the climate is simply too dry in southern components of Brazil. Heat, dry situations are adversely affecting roughly one-third of Brazil’s grain belt, dealer StoneX mentioned.
“Dry situations are lingering in South America and there are ideas it will trim manufacturing identical because it did a yr in the past,” mentioned Karl Setzer, commodity threat analyst for AgriVisor.
Regardless of the considerations, situations in Brazilian areas with favorable climate may compensate for crop losses in others, Setzer mentioned. He added that climate situations in Brazil have been extra annoying a yr in the past and soybean manufacturing was nonetheless a report.
Brazil and the USA compete for exports to international locations like China, the world’s high soybean importer.
China’s November soybean imports from the USA surged, after a decline in October, Chinese language customs information confirmed. read more
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Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Emily Chow in Beijing; Enhancing by Vinay Dwivedi, Mark Potter and Peter Cooney
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