Chicago Close: Lower Crop Rating Leads Wheat Higher

Wheat futures continued to press higher on Tuesday, boosted by a lower-than-expected US winter wheat condition rating.

Monday’s USDA crop progress report pegged the nationwide winter wheat crop for harvest in 2022 at 44% good to excellent as of Sunday, down 2 points on the week. Going into the report, most traders and analysts were expecting the condition of the crop to hold steady. The steepest weekly declines were in the predominantly Soft Red states, including Michigan and Ohio, amid excessive fall rain. Wheat was further supported by wet weather in Australia which has raised concerns about harvest delays and the quality of the crop. December Chicago wheat was up 10 ¼ cents at $8.56, December Kansas City jumped 17 cents to $8.78 ¾ and December Minneapolis added 14 ¾ cents to $10.38 ¼.

Corn futures were modestly higher, enjoying some spillover support from wheat. The crop progress report showed the national corn harvest at 95% complete, up from 91% a week earlier. December gained 3 ¾ cents to $5.80 ½ and new-crop December 2022 was ¾ of a cent higher at $5.59 ½.

Soybeans were slightly amid positioning ahead of the US Thanksgiving weekend. The ag markets will be closed Thursday and close early on Friday. January beans fell 1 ¼ cents to $12.73 and November dropped 2 ½ cents to $12.53 ½.

Source: DePutter Publishing Ltd.

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