US MIDDAY: wheat gains

Chicago wheat rose more than 1 percent on Thursday, extending a rally triggered by Wednesday’s US Department of Agriculture data that put the 2015 US crop below market estimates. Corn futures rose slightly on technical buying and spillover support from wheat. Soyabeans slumped on pressure from an advancing Midwest harvest and technical selling. Chicago Board of Trade December wheat added 5-1/2 cents or 1.2 percent to $5.18-1/4 a bushel, after climbing 1.8 percent on Wednesday. Short-covering also lifted prices, even as US export sales fell below market forecasts.

Weather concerns linger for wheat crops in Russia and Australia, said Bill Biedermann, trader at Allendale Inc. The USDA report trimmed US production more than expected, while also putting quarterly stocks below the average trade estimate. The European Commission on Wednesday raised its monthly estimate of this year’s soft wheat harvest in the European Union. Russia, meanwhile, signed a decree to reduce a wheat export tax as of Thursday, raising the prospect of increased shipments.

CBOT December corn added 1 cent to $3.88-3/4 a bushel. Corn export sales for 2015-16 totaled 748,200 tonnes in the latest week, in line with market forecasts. November soyabeans shed 14-3/4 cents, or 1.6 percent, to $8.77-1/4, moving off a one-month high struck in the last session. USDA said weekly soyabean export sales for 2015-16 totaled 2.506 million tonnes, topping market forecasts for 1.3 million to 1.7 million. The USDA on Wednesday pegged US stocks of corn and soyabeans as of September 1 below the average of analyst estimates, but supply was still ample heading into what was expected to be a bumper harvest.



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