CBOT wheat advances as dry weather threatens US crop development

 

 

CBOT wheat futures advanced as dry weather in the growing regions of the US threatened crop development in the world's largest exporter.

 

''Dry weather continues to stress winter-wheat development, especially through western growing areas in the central and southern plains", analysts said.

 

“There appears little chance of significant rains to occur in the dry western belt in the six-day period starting from yesterday," they said.

 

Wheat for December delivery gained as much as 0.5% to US$6.975 a bushel on CBOT before trading at US$6.955.

 

About 46% of winter wheat was in good or excellent condition as of October 31, down 47% from the previous week and down 64% a year earlier, the USDA said on November 1.

 

About 92% of the crop was planted in 18 states, compared with 88% a week earlier and 81% a year ago, the USDA said.

 

Corn futures advanced for the first time this week on speculation that the USDA may lower its estimate of the nation's harvest, limiting supplies available to importers.

December-delivery corn added as much as 0.5% to US$5.788 a bushel on CBOT, before trading at US$5.763.

 

The corn harvest in the US, the world's biggest grower, may fall to 12.592 billion bushels this year, compared with the government's October forecast of 12.664 billion, according to US agricultural researchers.

 

January-delivery soy gained as much as 0.6% to US$12.41 a bushel, before trading at US$12.343.

 

The US soy crop will reach 3.449 billion bushels, analysts said. The USDA last month predicted a production of 3.408 billion bushels, up from last year's record 3.359 billion bushels.