April 5, 2012

US wheat futures up 0.4% on good weather, stronger dollar

After falling 2.9% on Wednesday (Apr 4), US wheat futures rose 0.4% in early Asian trading on Thursday (Apr 5) on forecasts of good crop growing weather and a firmer dollar.
   

CBOT soy futures climbed higher on supply concerns, while corn futures were flat.

          
Forecasts for good crop weather after large rainfall across much of the US Plains hard red winter wheat region this week give a further boost to a crop that already has entered the growing season with high ratings. 

Informa estimated the 2012/13 US winter wheat crop at 1.631 billion bushels, up from 1.494 billion a year earlier, adding further pressure to the wheat market.

Firmer dollar weighs on commodities demand. Soy supply predicted to be tight after estimates of lower plantings in the US which follows poor supplies from South America after a drought in January.

Informa lowered its forecast of Brazil's soy crop to 66.5 million tonnes, from its previous estimate of 68 million. The firm cut its Argentine soy crop forecast to 45 million tonnes, from 47.5 million previously.   

Drier weather in the next couple of weeks should boost early plantings of the 2012 US corn crop, adding further pressure to new-crop corn amid expectations for the largest seeding in 75 years.