Chicago wheat prices are rising this morning for the fourth session in a row, their highest level since December 2012. Worries about global supplies continue to underpin the market.
Soybeans are also gaining ground after closing lower yesterday. However, concerns about global demand are dampening inflation.
"Global wheat stocks are low and protein levels are worrying. We are still waiting to see what happens to the Northern Hemisphere harvest," said Phin Ziebell, agricultural economist at National Australia Bank.
Concerns about scarcer global supplies have supported wheat prices as rains stalled harvests in Australia and threatened grain quality. Floods have also affected shipments from western Canada, while prices in Russia, the world's largest wheat exporter, have risen steadily.
Early crop results for Australia's near-record wheat crop show lower than expected protein levels, raising concerns about supplying a market already suffering from shortages from major northern hemisphere exporters.
Dry conditions in the US winter wheat belt also fueled early concerns about the next year's harvest.
The U.S. Department of Agriculture (USDA) said Monday that 44% of the U.S. winter wheat crop was in good to excellent condition, up from 46% a week earlier. Analysts had expected an unchanged score on average.
The agency lowered its forecast for US agricultural exports for the next year on Tuesday, citing weaker soybean demand from China and lower bean prices.
Source
Hansa Terminhandel GmbH