GRAINS-Chicago wheat hits highest in nearly two years on weather concerns
PARIS/BEIJING, April 28 (Reuters) - Chicago wheat futures rose on Tuesday to their highest in nearly two years, driven by U.S. drought concerns and strong demand, while corn hit a one-month high.
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 2% to $6.42-1/4 a bushel by 1100 GMT, a price not seen since June 2024.
Corn Cc1 was up 0.8% at a one-month high of $4.73 a bushel while soybeans Sv1 fell 0.2% to $11.90 a bushel but remained near a six-week high.
Rainy weather in the U.S. Plains wheat belt could alleviate some of the drought stress on crops, but some areas may have already experienced yield loss and the rain is forecast to miss other dry areas.
The USDA rated 30% of the nation's winter wheat crop in good-to-excellent condition on Monday, unchanged from the previous week. Most analysts polled by Reuters had expected a slight decline.
Ukrainian President Volodymyr Zelenskiy condemned Israel's purchase of grain from Ukrainian territory he said had been stolen by Russia and said that Kyiv was readying sanctions against those attempting to profit from it.
On the demand side, Saudi Arabia's main state buying agency, the General Food Security Authority (GFSA), said it bought 985,000 metric tons of wheat in an international tender.
"Saudi Arabia buying near 1 million metric tons was a positive sign for global demand in the current circumstances," said Josh Lawrence, advisory consultant at IKON Commodities.
Corn prices were underpinned by overly wet weather over the U.S. corn belt and strong export demand, with another South Korean corn purchase reported on Monday.
Early U.S. soybean and corn planting has made good progress, though storms expected in the U.S. Midwest could delay seeding in some areas.
Corn and soybeans were also supported by a boost from crude oil, Lawrence said.
Oil prices extended gains on stalled efforts to end the U.S.-Iran war while the Strait of Hormuz trade route effectively remained shut. Corn and soybeans are key feedstocks for biofuels.
Prices at 1100 GMT | |||
| Last | Change | Pct Move |
CBOT wheat Wv1 | 642.00 | 12.25 | 1.95 |
CBOT corn Cv1 | 473.00 | 3.75 | 0.80 |
CBOT soy Sv1 | 1190.00 | -2.00 | -0.17 |
Paris wheat BL2c1 | 196.25 | 1.75 | 0.90 |
Paris maize EMAc1 | 219.50 | 1.00 | 0.46 |
Paris rapeseed COMc1 | 571.50 | 19.50 | 3.53 |
Euro/dlr EUR= | 1.17 | 0.00 | -0.22 |
Most active contracts |
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