Chicago wheat futures surge over 6 pct on global crop concerns

Source: Xinhua| 2018-07-26 04:42:57|Editor: Mu Xuequan
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CHICAGO, July 25 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural commodities closed higher on Wednesday, with wheat futures rising over 6 percent, supported by concerns about crop shortfalls in key production areas around the globe.

The most active corn contract for December delivery went up 7.25 cents, or 1.98 percent to close at 3.7325 dollars per bushel. September wheat delivery surged 32.5 cents, or 6.37 percent to close at 5.4275 dollars per bushel. November soybean delivery added 2.5 cents, or 0.29 percent to close at 8.7575 dollars per bushel.

European consultant Strategie Grains said Wednesday that it cut its forecast for the EU's soft wheat to just under 130 million tonnes compared with 132.4 million tonnes estimated earlier this month. If realized, that would be the smallest crop output from the EU since 2012.

Participants in the U.S. spring wheat tour who are traveling across North Dakota said they're seeing evidence of heat stress on the crop and that the crop doesn't look as good as some had expected considering the lofty crop ratings.

About 88 percent of the wheat crop was in good or excellent condition as of Sunday, the U.S. Department of Agriculture said in a report this week. Tour participants will release their findings from the state as a whole on Thursday.

The strength in wheat lifted corn futures to their highest in more than three weeks. Corn also received support from concerns about dry conditions limiting harvest yields in parts of the U.S. Midwest.

Soybean futures ended slightly higher, with technical buying pulling prices higher after the market dipped into negative territory.