SINGAPORE- Chicago wheat futures rose for a third day on Monday, trading near last session’s 8-1/2-year top as tightening supplies in key exporting countries buoyed the market.
Soybeans jumped to their highest in more than two weeks, while corn was largely unchanged.
“The rally is about as broad as it can be,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring to gains in the wheat market.
“The market is still adjusting to lower 2021 crop estimates and the tight supply conditions that implies.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.4 percent to $7.65 a bushel by 0200 GMT, having closed up 1.2 percent on Friday when prices hit a February 2013 high.
Soybeans Sv1 were up 0.5 percent to $13.72 a bushel, after rising earlier in the session to $13.73-3/4 a bushel, the highest sine July 30 and corn was unmoved at $5.73 a bushel.
The US Department of Agriculture last week slashed its forecast of global 2021-22 wheat production and ending stocks, citing poor weather in Russia, Canada and the United States.
Adverse weather has also cut crop prospects in the European Union, contributing to a potentially “explosive” global supply outlook, analyst firm Strategie Grains said last week.
