Wheat Futures Rocket to 5-Month Highs on Drought
Wheat futures jumped to a nearly five-week high Wednesday, gaining steam on concerns about drought-stricken crops and lower-than-expected yield estimates in the U.S. Great Plains.
Spot-month soybean futures reached a fresh high of more than nine months, while corn prices fell.
After dipping Wednesday morning, Chicago Board of Trade wheat futures rose for the seventh straight session, with plummeting production estimates and photographs of dry, dusty fields from an annual wheat tour helping to buoy prices.
Participants on an annual Wheat Quality Council tour in Kansas said Wednesday yields from 13 fields in the state's southwest region are forecast at 27 bushels an acre, below last year's estimate of 37.1 bushels for the second day of the tour. Kansas is the biggest wheat-producing state in the U.S.
Chicago Board of Trade May wheat rose 5 cents, or 0.7%, to $7.13 a bushel, the highest settlement for a front-month contract since March 24.
Soybean futures were mixed. CBOT May soybeans added 6 3/4 cents, or 0.4%, to $15.30 3/4 a bushel, the highest closing price for a front-month contract since July 12, 2013, supported by strong demand for the oilseeds. But July futures, the most actively traded contract, dropped 4 1/2 cents, or 0.3%, to $15.12 3/4 a bushel.
Corn futures fell Wednesday after reaching an eight-month high in the previous session on concerns about poor weather and planting delays for the U.S. crop. CBOT May corn shed 1 3/4 cents, or 0.3%, to $5.14 a bushel.
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(END) Dow Jones Newswires
April 30, 2014 15:32 ET (19:32 GMT)
DJ Wheat Futures Hit Nearly Five-Week High on Plains Drought->copyright