Wheat jumps to highest in nearly six years on dry global weather
- Global supply concerns boost CBOT wheat
- USDA announces daily U.S. corn, soy export sales
- Soybean futures retreat from gains
By Tom Polansek
CHICAGO, Oct 16 (Reuters) - U.S. wheat futures surged to their highest prices in nearly six years on Friday as dry weather in key growing regions around the world fueled supply concerns.
Corn touched a 14-month high on prospects for hefty sales to China, while soybeans also rose.
Traders are keeping a close eye on wheat fields as dryness threatens production in Argentina, the United States, and the Black Sea region. Buying by commodity funds is supporting gains in the market, with the most-active Chicago Board of Trade (CBOT) contract up 15% over the past month, analysts said.
“The wheat market has been incredibly resilient this week,” said Matt Wiegand, commodity broker for FuturesOne. “Every time it’s tried to dip, it’s moved higher.”
The most-active December wheat futures contract was up 6¢ at $6.24¼ a bushel by 12:15 p.m. CDT (1715 GMT) at the CBOT. The contract earlier reached $6.30¾, its highest since December 2014.
The December contract was trading at a premium to the March 2021 contract, which was up 3¢ at 6.22½ a bushel.
The gains came a day after Argentina's Rosario grains exchange lowered its estimate of the country's 2020-21 wheat crop to 17 million tonnes from 18 million.
Corn futures were up 1 cent at $4.04¾ a bushel and set their highest price since August 2019. Soybean futures fell 9¢ to $10.53¼ a bushel, retreating from gains in the previous session.
The U.S. Department of Agriculture, in a daily reporting system, said exporters struck deals to sell 128,000 tonnes of U.S. corn to Mexico and a total of 391,150 tonnes of U.S. soybeans to unknown destinations.
In a separate weekly report, the USDA said U.S. wheat export sales in the week ended Oct. 8 were 528,500 tonnes for 2020/21 shipment and 71,200 tonnes for 2021/22. Total sales were near the high end of a range of trade estimates and the most in seven weeks. (Reporting by Tom Polansek in Chicago, Colin Packham in Sydney, and Sybille de La Hamaide in Paris. Editing by David Goodman and Tom Brown.)
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