Wheat futures jumped in overnight trading as investors pile back into the market after prices earlier this week hit the lowest in more than four months.
Investors are moving back into wheat after a brief respite amid ongoing concerns about global supplies and as the U.S. winter harvest continues.
Ukrainian producers are expected to harvest 21.8 million metric tons of wheat this year, down by almost a third year-over-year, French consultancy Agritel said earlier this week. Harvested area is forecast to fall 13%.
Dry weather in Australia will continues in some areas including south Queensland, New South Wales and South Australia, said Don Keeney, an agricultural meteorologist with Maxar.
In the U.S., 54% of the winter-wheat crop was harvested at the start of this week, up from 41% seven days earlier and ahead of the prior five-year average of 48%, according to the Department of Agriculture.
In Kansas, the biggest producer of winter varieties, 83% of the crop was in the bin as of Sunday, up from 59% a week earlier and the normal 65% for this time of year, the USDA said.
Corn futures also rose overnight as hot weather spreads in much of the southern Corn Belt.
Heat indexes from Oklahoma through parts of eastern Missouri will reach into the triple digits today, according to data from the National Weather Service.
In eastern Nebraska and central Iowa, heat indexes this weekend may hit 105 to 110 degrees Fahrenheit, the NWS said, though some non-severe thunderstorms may roll through southwestern Iowa.
Wheat for September delivery rose 20 1/4¢ to $8.56 ¾ a bushel overnight on the Chicago Board of Trade while Kansas City futures added 14 3/4¢ to $9.04 a bushel.
Corn futures for December delivery were up 7 1/2¢ to $6.03 ¾ a bushel.
Soybean futures for November delivery gained 3/4¢ to $13.66 ¼ a bushel. Soymeal fell $1.50 to $390.30 a short ton, while soybean oil futures added 0.45¢ to 60.04¢ a pound.**
