US wheat futures up on strengthening demand
Chicago: CBOT wheat futures surged on Friday due to increased demand driven by a weaker dollar and desirable new-crop wheat. September soft red winter wheat closed up 16-1/2 cents at $5.90-1/2 a bushel. November soybeans rose 8-1/4 cents to $11.29-3/4, and December corn increased 4-1/2 cents to $4.24. USDA reported higher-than-expected wheat export sales of 805,300 metric tons. Concerns over hot, dry weather affecting corn and soy crops also influenced the market.
CHICAGO, July 5 (Reuters) – Chicago Board of Trade wheat futures spiked on Friday amid an uptick in demand for U.S. wheat due to a weaker dollar and the availability of desirable new-crop wheat, traders said.
Corn and soy futures also rose on concerns over dry, hot weather disrupting the U.S. crop during its crucial growing period.
Trade remained light between the market’s closure on Thursday due to the U.S. Independence Day holiday and ahead of the weekend, traders said.
“We have a low volume, technical trade,” Brian Hoops, president of Midwest Market Solutions, said. “A lot of the trade will not be around and will give themselves a four-day weekend.”
CBOT September soft red winter wheat WU24 closed up 16-1/2 cents at $5.90-1/2 a bushel.
Most-active November soybeans SX24 ended up 8-1/4 cents at $11.29-3/4 a bushel. Most-active December corn CZ24 ended up 4-1/2 cents at $4.24 a bushel.
The U.S. Department of Agriculture released export sales for the U.S. crop one day late following the holiday. Wheat export sales in the week ended June 27 totaled 805,300 metric tons for 2024/25, above trade estimates for 350,000 to 700,000 tons.
Demand for the freshly harvested U.S. wheat crop are also attracting increased demand, traders said.
“There’s usually more interest in wheat around harvest,” Hoops said. “Buyers like freshly harvested wheat that’s moved right from combines to shipping ports to barges.”
Forecasts for hot, dry weather in July is bolstering concerns over the domestic corn and soy crops during a crucial phase of pollination, traders said.
“We want cold temperatures and above normal moisture, but we’re going to get higher temperatures and dryness,” Rich Nelson, strategist at Allendale, said.
Soybean export sales landed on the lower end of expectations and corn sales fell below a range of trade expectations.
Source Link: https://www.xm.com/research/markets/allNews/reuters/us-wheat-futures-up-on-strengthening-demand-53875169
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