Wheat futures closed higher on Tuesday, buoyed by a slow US winter wheat harvest and a downgrade in the condition of the crop. Soybeans posted modest gains while corn was mixed.
The American winter wheat harvest has been slow, reaching 10% complete as of Sunday, up only 6 points from the previous week and behind the 16% average, according to Monday’s USDA crop progress report. Meanwhile, the winter wheat crop was rated 52% good to excellent as of Sunday, down 2 points on the week and below trade guesses. July Chicago added 12 ½ cents to $5.49, July Kansas City gained 11 ¾ cents to $5.47 ¾, and July Minneapolis was up 8 cents at $6.30 ¾.
Soybeans managed gains, even as the soybean oil market fell after two straight days of limit gains following the US EPA’s bullish biofuel mandate announcement. Monday’s USDA crop progress showed the condition of the national soybean crop at 66% good to excellent, down 2 points from a week earlier and surprising most traders and analysts who expected an improvement. July beans were up 4 ¼ cents at $10.74, while November added 7 ¼ cents to $10.67 ¾.
Corn ended mixed, with the nearby July contract lower and new-crop December higher. The condition of the US crop improved by 1 point from a week earlier to 72% good to excellent. US Midwest weather for the crop remains mostly favourable, with scattered rainfall over the next week. July dropped 3 ¼ cents to $4.31 ½, and December gained 3 ¾ cents to $4.38 ¾.
