2023-07-05 17:56:41 ET
U.S. wheat futures soared Wednesday as slow winter wheat harvesting and deteriorating spring crop conditions prompted strong buying interest and short covering that lifted prices from two-and-a-half-week lows.
The U.S. Department of Agriculture said Monday that just 37% of the winter crop was harvested as of Sunday, compared with 52% last year, and unexpectedly cut its spring wheat rating as rains failed to improve conditions.
The USDA rated 48% of U.S. wheat in good-to-excellent condition, down two points from a week earlier, 51% of corn in good-to-excellent condition, up a point from the previous week, and conditions for soybeans lower by a point to 50%.
But analysts said the day's gains for wheat were mostly a technical response to its seven-session losing streak on the Chicago Board of Trade in which prices plunged nearly 15%.
CBOT wheat ( W_1:COM ) for September delivery settled +5% to $6.73 1/2 per bushel, while December corn ( C_1:COM ) ended +0.2% to $4.94 1/4 per bushel and November soybeans ( S_1:COM ) finished -0.2% to $13.50 1/2 per bushel.
ETFs: ( NYSEARCA: WEAT ), ( CORN ), ( SOYB ), ( DBA ), ( MOO )
Increasingly high bids for wheat exports from areas such as Russia and the European Union also supported CBOT wheat futures, as prices for French wheat rose in June by ~$11/ton to $252/ton and prices for Russian wheat climbed by ~$8/ton to $231.50/ton in June.
More analysis on U.S. crop futures:
- WEAT: Upgrading To Buy On El Niño Effects
- SOYB: The Long And The Short Of It
- DBA As Choices In Agricultural ETF Products Decline
For further details see:
Chicago wheat futures rebound from seven-session losing streak