Wheat rallied from the lowest level since 2010 amid concern cold weather in the U.S. may damage crops and speculation demand for supplies from the biggest exporter rose. Corn headed for the first monthly gain in five.
Wheat for March delivery gained as much as 0.5 percent to $5.5425 a bushel on the Chicago Board of Trade and was at $5.53 by 11:08 a.m. in Singapore. Futures touched $5.50 yesterday, the lowest price since July 14, 2010, and are set for an 8.6 percent loss this month after a 9.5 percent slump in December.
As much as 10 percent of wheat in the Great Plains and 2 percent in the southern Midwest may be hurt after some protective snow cover melted last week, according to Commodity Weather Group LLC. U.S. export sales of corn and wheat probably increased in the week ended Jan. 23 from a year earlier, based on a survey of four analysts by Bloomberg News.
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“We note some support to wheat prices stemming from concerns that cold temperatures in the U.S. could result in winterkill,” Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, wrote in an e-mail today. The decline in prices to a 3-1/2 year low may also help spur some demand, she said.
Wheat shipments are expected to be in a range of 300,000 metric tons to 625,000 tons from 293,627 tons a year earlier, the survey showed. The U.S. Department of Agriculture is set to release its sales report at 8:30 a.m. in Washington today.
Corn for delivery in March gained 0.1 percent to $4.2775 a bushel, heading for a 1.4 percent advance this month, the first such increase since August. Soybeans fell 0.2 percent to $12.6725 a bushel, poised for a second monthly decline.
Source:- businessweek.com
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