Chicago Close: Wheat Futures Surge

Downtrodden wheat futures closed sharply higher on Tuesday, with corn and soybeans going along for the ride.

Bargain hunting - amid ideas wheat had become oversold after the benchmark Chicago market touched a 14-month the previous trading session - helped to buoy prices, with the biggest gains coming in the winter wheat contracts. Minneapolis spring wheat futures also closed higher, although the gains were more modest as concerns about the potential for delayed planting on the northern Plains this year have helped keep that market relatively better supported versus winter wheat. European wheat futures also ended higher on the day. May Chicago wheat jumped 24 ½ cents to $4.53, May Kansas City was up 22 ½ cents to $4.42 ¾ and May Minneapolis added 14 ½ cents to $5.60 ¾.

Soybeans moved higher with wheat, with further support coming from a downward revision in the 2018-19 Brazil soybean production estimate. Conab pegged the Brazilian crop at 113.45 million tonnes, down 1.88 million from the agency’s previous estimate. The USDA is at 116.5 million tonnes. AgRural raised its estimate slightly, although it still remains below the other two estimates at 112.9 million. May soybeans climbed 7 cents to $8.97 and new-crop November added 6 ¾ cents to $9.32 ¼.

Corn ended with gains despite IEG Vantage (previously known as Informa) raising its estimate of 2019 U.S. corn planted area by 180,000 acres to 91.77 million acres. American farmers planted 89.1 million acres to corn last year. May corn closed 3 ¾ cents higher at $3.65 ¾ and new-crop December gained a nickel to $3.91 ½.

Live cattle futures ended lower today. Lean hogs posted gains.

Source: DePutter Publishing Ltd.

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