Wheat rises 0.6% after suffering rain depression

After suffering depression from rain earlier in the week, wheat made a 0.6 percent rise at $4.68 a bushel, rising above its 100-day moving average, under $4.66 a bushel.

Chicago soft red winter wheat, as grown in the American Midwest, added 0.5 percent to $4.55 a bushel, seeing its discount rise anew marginally.

Further rain scheduled for the southern Plains is also in view with Terry Reilly of Futures International saying, “precipitation is set to come in late this weekend into early next week”.

However, it will be dry until then, and temporarily at least, US hard red winter wheat country has “started to dry down”.

Furthermore, there is a growing focus on the fact that, while rains have eased drought in many areas, some have been missed.

“Weather risks remain in the market and it won’t take much for the funds to start buying again,” said CRM AgriCommodities, adding that, “for now, the risks are reducing”.

Also revealed will be US export sales data expected for wheat to come in at 100,000-300,000 tonnes, which appears more achievable by recent results than the 250,000 to 500,000 tonnes that investors have been holding out for and been often disappointed.

Export sales came in at 162,807 tonnes, with the early-week price falls, and the easing dollar, coming too late to influence the data unveiled later on Thursday.

Other development in the wheat market is on India, extending its run of particular influence on ag markets after it on Tuesday ditched its sugar export tax, hurting prices of the sweetener.

“India has dropped a plan to increase the wheat import tax indicating that the government production forecast of 97.1 million tonnes is too optimistic,” CRM AgriCommodities said.

Mike Mawdsley, at First Choice Commodities, meanwhile noted that Argentina’s dryness might be extending far enough to have an impact on wheat too.

“Looks like dry weather returns to Argentina which could affect wheat plantings,” Mawdsley said.