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Wheat Jumps 1% To Hit Near 9-Year High On Supply Woes

U.S. wheat futures rose 1% on Monday as concerns over tight global supplies pushed prices to a near nine-year high.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade were up 1% at $8.43 a bushel, as of 0229 GMT, near the session high of $8.45-3/4 a bushel – the highest since December 2012. Wheat closed 1.7% higher on Friday.

* The most active soybean futures were flat at $12.62-3/4 a bushel, having closed 0.9% lower on Friday.

* The most active corn futures were steady at $5.71 a bushel, having closed 0.4% lower in the previous session.

* The International Grains Council last week cut its forecast for 2021/22 global wheat production, underscoring concern about dwindling stocks.

* Heavy rains in Australia have added to supply worries by threatening to damage what has been forecast as a bumper harvest that would help replenish export availability.

MARKET NEWS

* The safe-haven U.S. dollar traded close to a 16-month high to the euro on Monday on growing anxiety over the impact of surging COVID-19 infections in Europe, with Austria reimposing a full lockdown and Germany considering following suit.

* Crude oil fell to seven-week lows on Monday, extending declines after the previous session’s slide, on concerns about excess supply after Japan said it was weighing releasing oil reserves and over demand from a worsening COVID-19 situation in Europe.

* Asian stocks made a soft start to the week on Monday while oil and the euro were under pressure, as the return of COVID-19 restrictions in Europe and talk about hastened tapering from the U.S. Federal Reserve put investors on guard.
Source: Reuters (Reporting by Colin Packham; Editing by Sherry Jacob-Phillips)

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