Wheat Rallies As Cold Weather Threatens US Crops
US wheat futures jumped more than 1% on 9 April to hit a three-week high, as cold weather threatens to cause further harm to crops already damaged by dry weather.
Soybeans rose more than 1%, despite the threat of a trade war between the United States and China damaging demand for North American supplies, while corn also edged higher.
The most active wheat futures on the Chicago Board of Trade were up 1.4%, at $4.78-3/4 a bushel by 0257 GMT, near the session high of $4.81-3/4 a bushel – the highest since 16 March. Wheat closed up 1.6% on Friday.
"There are concerns about cold temperatures causing some frost damage, coming after last week's US Department of Agriculture crop report that showed the damage of recent dry weather," said Phin Ziebell, agribusiness economist at National Australia Bank.
As well the cold temperatures threatening US hard red winter wheat crops, analysts said that the adverse weather could also delay planting of the country's spring crop.
The most active soybean futures were up 1.7%, at $10.51-1/4 a bushel, after closing up 0.2% on Friday.
The most active corn futures were up 0.5%, to$3.90-1/4 a bushel, having closed down 0.3% in the previous session.
Widening Trade War
Despite the grain and soybean complex all strengthening, analysts noted pressure from fears of a widening trade war between the United States and China.
Traders fears a trade war between the world's two largest economies will depress demand for US soybeans.
Escalating tensions between the United States and China have, however, triggered a flurry of US soybean purchases by European buyers, in one of the first signs that trade tariff threats lobbed between the world's top two economies are disrupting global commodity trade flows.