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GRAINS-Wheat jumps 2 pct to hit six-week high on frost damage fears
May 1, 2017 / 4:55 AM / 5 months ago

GRAINS-Wheat jumps 2 pct to hit six-week high on frost damage fears

    * Cold weather threatens U.S. production
    * Corn firms 1 percent
    * Soybeans rally more than 0.5 percent

    By Colin Packham
    SYDNEY, May 1 (Reuters) - U.S. wheat futures rose more than 2 percent on Monday as frost across key
growing regions stoked fears of widespread production losses, pushing prices to a six-week high.
    Corn rose more than 1 percent, drawing support from wheat, while soybeans rallied more than 0.5
percent.
    The most active wheat futures on the Chicago Board Of Trade rose as much as 2.5 percent to $4.43
a bushel, the highest since March 10. Wheat was trading up 2.3 percent at $4.42-1/4 a bushel by 0442 GMT,
after rising 0.2 percent on Friday.
    "With frost through Kansas, Colorado and even stretching through to Oklahoma, the market is concerned
about how much of the crop has been damaged," said Andrew Woodhouse, grains analyst at Advance Trading
Australasia.
    Frost threatens rapidly maturing hard red winter wheat crops, with Kansas the biggest producing state
in the United States.
    In Kansas, the largest U.S. wheat state, 82 percent of the winter wheat had reached the "jointing"
stage of growth by April 23, and 25 percent of the crop was in the "heading" stage, the U.S. Department of
Agriculture said, leaving it vulnerable to freeze injury.
    The cold weather in the U.S. adds to a spate of unfavourable weather that threatens to curtail global
production.
    Farming agency FranceAgriMer on Friday reported a sharp decline in crop conditions for wheat, with the
amount of soft wheat rated good/excellent falling to 78 percent from 85 percent in the week to April 24.

    The most active corn futures rose 1.2 percent to $3.70-3/4 a bushel, having closed down 0.8
percent in the previous session.
    The most active soybean futures rose 0.84 percent to $9.64-1/4 a bushel, having closed down 0.1
percent on Friday.
    Analysts noted some support for corn amid recent delays to plantings, which may force some farmers to
switch to soybeans.
    While rains fell across the Midwest, forecasts call for drier weather for much of the week.
        
 Grains prices at  0442 GMT
 Contract      Last   Change   Pct chg  Two-day chg   MA 30  RSI 
 CBOT wheat  442.25    10.00    +2.31%       +2.55%  438.47    65
 CBOT corn   370.75     4.25    +1.16%       +0.41%  368.16    50
 CBOT soy    964.25     8.00    +0.84%       +0.73%  968.24    47
 CBOT rice     9.54    $0.12    +1.22%       +1.11%  $10.13    24
 WTI crude    49.24   -$0.09    -0.18%       +0.55%  $50.21    35
 Currencies                                                      
 Euro/dlr    $1.089   $0.000    -0.04%       +0.17%              
 USD/AUD     0.7481    0.000    -0.04%       +0.27%              
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
 (Reporting by Colin Packham)
  

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