Friday, January 18, 2019
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Wheat Retreats as Price Surge May Curb Demand; Soybeans Near $15

Wheat declined on speculation the biggest gain in almost a month may curb purchases as investors weigh the outlook for crops in the U.S. after freezing weather.

The contract for July delivery lost as much as 0.9 percent to $7.0375 a bushel on the Chicago Board of Trade and was at $7.0625 at 9:52 a.m. in Singapore. Prices surged 3.4 percent yesterday, the most since March 19, to take the advance in the first two sessions of this week to 6.2 percent as cold weather damaged crops in the world's biggest exporter.

Wheat has risen 17 percent this year as crop conditions in the U.S. deteriorated and tensions between Russia and Ukraine boosted concern that supplies from the Black Sea region may be disrupted. About 34 percent of the winter-wheat crop that will be harvested beginning in May was in good or excellent condition on April 13, from 35 percent a week earlier and 62 percent in November, the U.S. Department of Agriculture said April 14.

"We had quite a bit of a rally overnight on the back of potential winter-kill issues in the U.S.," Graydon Chong, an analyst at Rabobank International in Sydney, said by phone. "We may well see the market take a bit of a breather here after the sharp rally. The market continues to watch developments in the Black Sea region."

Hard red winter wheat for July delivery declined 0.5 percent to $7.675 a bushel after climbing 6.3 percent in the previous two days, the most since July 5, 2012. The contract is for a variety that's used to make bread.

Soybeans for July delivery advanced 0.5 percent to $14.9475 a bushel, the highest level since April 9, while corn declined 0.4 percent to $5.0775 a bushel.

To contact the reporter on this story: Phoebe Sedgman in Melbourne at This email address is being protected from spambots. You need JavaScript enabled to view it.

To contact the editors responsible for this story: James Poole at This email address is being protected from spambots. You need JavaScript enabled to view it. Jake Lloyd-Smith, Jarrett Banks

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