SINGAPORE- Chicago wheat ticked lower on Wednesday as market participants took a breather after a more than 3 percent rally in the previous session, driven by cold weather across the US grain belt which stoked concerns about crop losses.
Soybeans rose for a fourth consecutive session, while corn gained more ground.
“The very cold weather in US winter wheat regions since the weekend prompted the gains,” said Tobin Gorey, director of agricultural strategy at the Commonwealth bank of Australia, referring to Tuesday’s rally.
“Many in the market fear that those very cold temperatures will have killed enough US winter wheat crop to tighten 2021 supply. (But) not everyone is quite so convinced that the losses will be large.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.1 percent to $6.60-3/4 a bushel.
Soybeans added 0.1 percent to $13.86-1/2 a bushel and corn rose 0.1 percent to $5.53 a bushel.
Traders are focused on temperatures dropping below 0 degrees Fahrenheit (-18 Celsius) as far south as west-central Texas. Winter wheat was seen as vulnerable to the extreme cold in areas lacking adequate snow cover.
Commodity Weather Group last week estimated 10 percent of the US soft wheat crop and 15 percent of the hard wheat crop were at risk of damage from winterkill caused by freezing temperatures.– Reuters