Chicago Close: Tight Supplies Further Underpin Wheat

Wheat and soybean futures ended higher on Monday, while corn settled unchanged.

The wheat market continued to be buoyed by tight global supplies of high protein wheat following major droughts in the US and Canada, as well as parts of Russia. Meanwhile, demand has remained strong, helping to push the Minneapolis spring wheat market to its highest since 2012. December Chicago wheat gained 3 ½ cents to $7.59 ½, December Kansas City was up 3 ¾ cents to $7.77 ¾ and December Minneapolis jumped 14 cents to $10.27.

Soybeans were boosted by strength in crude and world vegetable oil markets. November beans were up 16 ¾ cents to $12.37 ¼ and January was 16 ¼ cents higher at $12.47.

Corn finished unchanged, with poor export demand weighing on the market. The USDA reported today that 545,127 tonnes of US corn was exported during the week that ended Oct. 21. That was down from 1.05 million the previous week and from 680,000 the same week last season. The USDA noted accumulated corn exports had reached 4.713 million tonnes (185.5 million bu), which is still 57 million bu behind last season’s pace. The December and March contracts settled at $5.38 and $5.46, respectively.

Source: DePutter Publishing Ltd.

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