Wheat Rises Amid Concern U.S. Freezing Weather May Damage Crops
Wheat futures rose for a second time in three days amid concern a new wave of freezing weather in the U.S. will damage crops in the country, the biggest shipper of the grain.
Another blast of freezing Arctic air this week may push temperatures for parts of the U.S. to the lowest so far this winter, AccuWeather Inc. forecast. Colder weather may damage as much as 25 percent of the Midwest crop and 10 percent of plants in the Great Plains, MDA Weather Services said last week.
"The week should again be marked by very low temperatures in the U.S., raising fears of damage, particularly for a part of Illinois and Nebraska," Paris-based farm adviser Agritel wrote in a market comment.
Wheat for March delivery rose 0.5 percent to $5.66 a bushel on the Chicago Board of Trade by 5:16 a.m. Milling wheat for delivery the same month traded on NYSE Liffe in the French capital rose 0.5 percent to 192.75 euros ($264.97) a metric ton.
Chicago wheat futures dropped to $5.605 a bushel on Jan. 10, the lowest level since July 2010, and advanced 0.3 percent last week, snapping a seven-week slump, the longest such decline since October 2008.
January is on track to be the coldest month of the century in the lower 48 states, according to Commodity Weather Group LLC, after waves of freezing air swept across the country.
"The cold spell in the U.S. will continue to have a negative impact on winter crops," said Leo Baek, a grains trader at Korea Exchange Bank Futures Co. in Seoul.
Saudi Arabia bought 715,000 tons of wheat for shipment in April to June, with accepted origins being the European Union, North and South America and Australia, the country’s Silos & Flour Mills Organization said.
Soybean futures for March delivery added 0.1 percent to $12.855 a bushel after dropping 2.4 percent last week. The price touched $12.635 on Jan. 24, the lowest level for a most-active contract since Jan. 2.
Corn for March delivery was unchanged at $4.295 a bushel. The grain advanced 1.3 percent last week on speculation that demand for livestock feed will increase after cattle and milk futures rose to records.
