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Sept. 21 (Bloomberg) -- Wheat rose for a second day in Chicago on speculation that adverse weather in the U.S., the biggest exporter, may hurt yields for the grain as well as corn and soybeans.
Rain and cool conditions may be unfavorable for corn and soybean crops in parts of the U.S. Midwest, while planting of some wheat may be delayed due to dry soil in the southern Plains, Telvent DTN Inc. said yesterday. U.S. corn and soybean conditions deteriorated last week, the Department of Agriculture said in a report.
“There are some concerns about unfavorable weather in the main growing areas of the U.S.,” said Kieran Walsh, a broker at GFI Securities in London. “The fundamentals are still bullish.”
Wheat for December delivery rose 2.75 cents, or 0.4 percent, to $6.775 a bushel by 10:49 a.m. London time on the Chicago Board of Trade. Prices slid for a third week last week and have slumped 14 percent this month.
“Given the heavy selloff we’ve seen over the past week, you’ve got to start thinking that prices are looking a little oversold at the moment and could potentially be susceptible to a rebound,” Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Banking Group Ltd., said by phone from Melbourne today. “Crop conditions haven’t been good either, so that’s also price-supportive.”
Milling wheat for November delivery traded on NYSE Liffe in Paris climbed 25 cents, or 0.1 percent, to 196.25 euros (268.41) a metric ton.
Corn for December delivery rose 1.5 cents, or 0.2 percent, to $6.9175 a bushel in Chicago. The grain slid 6 percent last week, the biggest drop since June.
Soybeans for November delivery gained 1.5 cents, or 0.1 percent, to $13.395 a bushel. The oilseed declined 5 percent last week, the biggest retreat since March.
About 53 percent of the soybean crop was in good or excellent condition as of Sept. 18, down from 56 percent the previous week and 63 percent a year earlier, the USDA said. About 51 percent of corn was rated good or excellent, against 53 percent a week earlier and 68 percent a year earlier, it said.
Corn may advance to a record as “nervousness” about global supply returns to the market and harvest yields in the U.S. may be less than expected, Newedge USA LLC said today.
Futures may resume their rally after the U.S. harvest in October, jumping to $7.75 to $8 a bushel, as importers fight for supply and the market contends with a third year of global deficit, said Dan Cekander, director for grain research at Newedge, the world’s top futures broker by customer accounts. Prices reached this year’s high of $7.93 on June 9.
--Editors: Dan Weeks, Sharon Lindores.
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