Wheat Rises On Short-Covering, Soy Waits On China News
Chicago wheat futures rose as short-covering and hopes of more export demand supported, although the continuing lacklustre U.S. export performance limited rises.
Soybeans eased for a second consecutive session and corn was firm.
“Wheat is seeing some buying interest today after its recent falls without any real change to background factors,” said Matt Ammermann, commodity risk manager with INTL FCStone.
“Soybeans and corn are drifting as the market awaits news about any trade deal with China which could reopen the Chinese market to U.S. soybean exports.”
Chicago Board of Trade most-active May wheat was up 0.8% at $4.60-1/2 a bushel at 1217 GMT. Wheat fell 1.2% on Monday on technical selling and sluggish export demand for U.S. supplies.
May corn was up 0.1% at $3.72 a bushel. May soybeans fell 0.08% to $9.05 a bushel.
"It is short covering in wheat," said Ole Houe, director of advisory services at brokerage IKON Commodities. "We continue to see solid tender demand globally, even though not quite reflected in the weekly U.S. sales just yet."
Ethiopia’s government has issued an international tender to buy a hefty 400,000 tonnes of milling wheat, traders said on Monday.
“There are some fears about flooding in the U.S. delaying spring wheat planting,” Ammermann said. “But the background picture for the wheat market remains lacklustre."
"U.S. export inspections continue to disappoint and there no supportive news there for wheat. Price spreads are not great enough to push any demand to the U.S. from the European Union or Black Sea right now.”
The U.S. Department of Agriculture (USDA) on Monday reported weekly U.S. wheat export inspections of 353,727 tonnes, below trade expectations for 400,000 to 700,000 tonnes.
Wet weather in parts of the U.S. could disrupt corn planting.
U.S. Vice President Mike Pence is due to travel to Nebraska on Tuesday to tour the devastation left by floods in the Midwest which have killed at least three people and caused hundreds of millions of dollars in damage.
“For corn, the snow melt continues in parts of the United States," Ammermann said. "There is record flooding across plains right now and this story is just the beginning as the Northern Midwest has record snowfall to still melt. We have yet to see the peak of this story.”
“But corn and soybeans remain focused on the U.S./China trade dispute.”