U.S. wheat rose for a fourth consecutive session to hit a 2-1/2-week high on Monday as forecasts for adverse weather in key U.S. producing regions and fund buying underpinned gains. Corn rose nearly 1 percent to hit a near two-week high, while soybeans firmed by 0.6 percent.
The most active wheat futures contract on the Chicago Board of Trade climbed 0.9 percent to $4.64-3/4 a bushel, near the session peak of $4.66-3/4 a bushel – the highest since Feb. 18. Wheat closed up 0.2 percent on Friday.
“It is forecast to be wet in soft red wheat growing regions and remain dry in the hard red wheat regions, which has the market a little spooked,” said Andrew Woodhouse, senior grains analyst, Advance Trading Australasia.
The weekly U.S. Drought Monitor, released on Thursday, showed that 21 percent of Oklahoma, the No. 3 winter wheat state last year, was “abnormally dry”, up from 1 percent a week ago.
The most active corn futures rose 0.91 percent to $3.61-1/2 a bushel, near the session high of $3.62-1/4 – the strongest since Feb. 25. Corn closed up 0.5 percent in the previous session.
The most active soybean futures rose 0.6 percent to $8.84 a bushel. That was close to the session high of $8.86-1/2 a bushel, which was the loftiest since Feb. 22.
China’s soybean imports are forecast to climb 6 percent in the year to September 2016 on higher demand for animal feed, while corn purchases will decline as the country takes steps to cut domestic inventories, a senior industry official said last Wednesday.