US wheat futures prices are currently under pressure as predictions of mild temperatures and some rain in key growing areas raised hopes that field crops will remain in good condition before hibernating, traders said.
"The US weather forecast for wheat is looking pretty good," said Terry Reilly, senior commodity analyst at Futures International. "The warmer temperatures may add some boost to wheat conditions."
Corn and soybean futures prices firmed, recovering from weakness in early hours of trading after the US Department of Agriculture announced new export deals for both commodities.
Private exporters reported sales of 130,000 tons of soybeans to China, a flash sale of the oilseeds was announced on the fifth trading day in a row, and 1.844 million tons of corn to Mexico.
The impact of the Mexican deal has been limited as the main US corn buyer usually makes a large purchase of US corn in December.
Expectations of a bumper crop of both commodities in South America kept profits in check.Forecasts in the past few days have indicated improved growth weather, but parts of southern Brazil have remained dry.
Grain markets are cautious a day ahead of USDA's monthly estimate of global agricultural supply and demand (WASDE report).
The corn and soybean markets are also evaluating Tuesday's US government announcement to reduce the amount of biofuels that oil refiners must add.
The wheat market is waiting for an update on the Australian harvest and hopes that a dry spell in the coming week will avert further quality damage.
Source
Hansa Terminhandel GmbH