Wheat Closes Higher on Rain, Poor-Quality Crop in Europe; Beans Lower
Wheat futures rose to the highest price in more than two weeks on concerns about crops in Europe, while soybeans fell for the first time in five sessions.
Excessive rainfall in some countries including Germany, Poland, Latvia, and Lithuania will slow collection of wheat crops and reduce quality, forecasters said. As much as an inch of rain in Germany and Poland that has slowed the wheat harvest will linger into the weekend, according to Commodity Weather Group. More precipitation is on the way, which could further hinder efforts to collect grain.
“Extensive rains move in at the middle of next week, slowing harvest for UK, France, and Germany,” CWG said in a report on Wednesday.
Rain in the past 10 days has inundated parts of eastern Europe, and production in Latvia and Lithuania will decline almost 10%, according to Bloomberg News, which cited Denmark’s Linas Agro and European Commission data. That’s brought down test weights in the region.
France may lose its ranking as the top exporter in the EU due to a “disastrous” harvest, Agritel said earlier this month. Germany would take over the position, the researcher said.
Wheat futures for September delivery on the Chicago Board of Trade rose 3½¢ to $4.20½ a bushel on Wednesday. Kansas City futures added ½¢ to $4.10½ a bushel in Chicago.
Soybeans declined as rain is forecast for much of the Midwest in the next 10 days, boosting already-favorable crop conditions. Prices had been rising on robust export demand as importers purchased more than 3 million metric tons of beans in the past two weeks. The buying streak came to an end as the USDA said importers bought corn, not beans, in a report today.
Soybean futures for November delivery declined 6¢ to $9.82 a bushel in Chicago. Corn futures added ½¢ to $3.33 a bushel.