GRAINS-MGEX wheat at 2-1/2-year high on dry weather; corn, soy firm
By Michael Hirtzer
CHICAGO, June 14 (Reuters) - U.S. spring wheat futures extended gains to a fresh 2-1/2-year high on Wednesday while futures for other wheat varieties and soybean prices also gained amid limited prospects for much-needed rain, traders said.
Corn futures were roughly flat at the Chicago Board of Trade and wheat prices trimmed earlier gains as scattered showers moved through parts of the U.S. Plains wheat belt and Midwestern corn and soy areas.
"North American spring wheat remains the epicenter of the action," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Rainfall, recent and expected soon, is only enough to be a balm rather than a cure."
MGEX July spring wheat futures was up 5-1/4 cents to $6.33-1/4 per bushel at 11:38 a.m. CDT (1638 GMT). Prices earlier reached a peak of $6.45-3/4, the highest level on a continuous chart since Dec. 24, 2014.
CBOT July soft red winter wheat, the global benchmark, was up 2-1/2 cents to $4.47-1/2 per bushel and K.C. hard red winter wheat was 4-1/2 cents higher to $4.61-1/2.
The U.S. Department of Agriculture on Monday slashed good-to-excellent crop conditions for spring wheat by 10 percentage points as expanding drought conditions stressed recently planted spring wheat fields in the Dakotas, Minnesota and Montana.
The poor state of U.S. spring wheat, a high-protein variety, has focused attention on a potential shortfall in protein-rich supplies after disappointing early protein readings from the U.S. hard red winter wheat harvest.
High-protein wheat being offered from Australia and the United States into Asia was climbing and Australian prices have also been supported by farmers holding back supplies, according to traders.
RECORD-HIGH VOLUME IN MINNEAPOLIS WHEAT
Volume in MGEX wheat futures hit a record high of 33,453 traded contracts on Tuesday, topping the previous record from January of 27,095 contracts, the exchange said in a release.
"Wheat traders are watching Minneapolis wheat and corn traders are watching the weather," EFG Group analyst Tom Fritz said. "If these rains moving through over the weekend are a bust, (soy) beans might having something to hang their hat on."
CBOT July soybean futures were up 2 cents to $9.34-1/2 per bushel and CBOT July corn was down 1-3/4 cents to $3.79-1/4.
The Commodity Weather Group in a note to clients said rains in the Midwest will be limited during the next 10 days while northern and eastern parts of the region could see showers that would alleviate crops during the next 11 to 15 days. (Additional reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris; Editing by James Dalgleish)