Forexpros – Wheat futures rose for the first time in three days during European morning trade on Tuesday, easing off a two-week low as market participants continued to monitor weather conditions in key U.S. wheat-growing states.
On the Chicago Mercantile Exchange, wheat futures for May delivery traded at USD6.1925 a bushel during European morning trade, gaining 0.49%.
It earlier rose by as much as 0.7% to trade at a session high of USD6.2138 a bushel. Prices fell to as low as USD6.1475 on Tuesday, the lowest since March 30.
Wheat prices tumbled nearly 4% in the two sessions leading up to Tuesday as agricultural commodities came under pressure from broader market risk aversion, which was sparked by growing concerns over Spain’s fiscal health.
The renewed euro zone debt woes came amid mounting fears over global growth prospects, especially in the U.S. and in China, the world’s two largest economies.
Some crop-friendly rainfall in the U.S. Midwest in recent days further added to the selling pressure.
However, prices regained strength amid concerns over freezing temperatures in the U.S. Plains-region, which could potentially threaten the winter crop.
According to agricultural meteorologists, potentially crop-damaging freezing temperatures descended onto western Kansas early Monday. Kansas is the largest winter-wheat growing state in the U.S.
Reports that wheat fields across most parts of southern Kansas were flattened by high winds overnight provided further support.
Agricultural traders pay close attention to the weather because farmers need favorable conditions to grow large crops to replenish low inventories.
Market participants were looking forward to the U.S. Department of Agriculture’s weekly planting progress report after Tuesday’s closing bell on the CBOT.
The report, which typically comes out on Monday, has been delayed due to a fire at a USDA building in Washington.
The U.S. is the largest wheat exporter, followed by Australia and Russia, according to the USDA.
Elsewhere on the Chicago Mercantile Exchange, corn for May delivery eased up 0.1% to trade at USD6.2375 a bushel, while soybeans for May delivery added 0.5% to trade at USD14.2713 a bushel.
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