Chicago wheat futures continued to climb on Tuesday, even after India said it would allow some overseas wheat shipments awaiting customs clearance, as traders turned their attention to U.S. weather and planting for spring wheat that remains well below normal.
Wheat for July delivery (W_1:COM) settled +2.4% to $12.77 1/2 per bushel, while July soybeans (S_1:COM) closed +1.3% to $16.78 per bushel and July corn (C_1:COM) ended -1.1% to $8.00 3/4 per bushel.
ETFs: (NYSEARCA:WEAT), (SOYB), (CORN)
Wheat received support from a U.S. Department of Agriculture report late Monday that indicated worsening conditions of the U.S. winter wheat crop, adding to concerns about supply in an already tight market.
The USDA rated 27% of the U.S. winter wheat crop in good to excellent condition, down two percentage points from the previous week and below analyst estimates, while spring wheat was 39% planted, below expectations of 43% and the five-year average of 67%.
“Spring wheat planting remains much behind normal and overall spring wheat planting could be reduced because of the delayed planting pace,” Price Futures Group’s Jack Scoville said, according to Dow Jones.
Meanwhile, the agency said 49% of the U.S. corn crop is now planted, vs. 22% at this time last week, and soybean planting progressed to 30%; although levels for wheat, corn and soybean are all well below the pace at this time a year ago, Karl Setzer of AgriVisor expects a lot of progress will be made this week.
India, where a heat wave has hurt wheat production and pushed domestic prices to record highs, said over the weekend that it would ban wheat exports.