×

GRAINS-Wheat up for 5th session on US crop woes, set for 2nd month of gains

* Wheat prices hover near last session's 7-month peak

* Poor U.S. winter wheat crop conditions buoy prices

* Soybeans up for 2nd session, corn ticks up

(Adds comment, detail) SINGAPORE, Feb 28 (Reuters) - Chicago wheat futures rose for a fifth session on Wednesday, poised for a second month of gains as dry conditions in U.S. winter crop areas buoy the market. Soybean prices climbed for a second session as a severe drought in Argentina curbs yield prospects, while corn ticked higher again after a rally on Tuesday. The Chicago Board of Trade most-active wheat contract had gained 0.3 percent to $4.78-1/4 a bushel by 0353 GMT. The market earlier in the session climbed to $4.79 a bushel, matching Tuesday's peak price which was the highest since July 31, 2017. Soybeans advanced 0.4 percent to $10.54 a bushel and corn added 0.1 percent to $3.71 a bushel. All three markets are on track for a second straight month of gains. "The U.S. Hard Red Winter Wheat region has large areas that have been too dry for a long while," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia. "Weather forecasters reckon the dry parts of the region are unlikely to get much rain for another fortnight. The clock is ticking louder and louder in the market's mind." The U.S. Department of Agriculture on Monday rated the wheat crop in top growing state Kansas at only 12 percent in good-to-excellent condition, down 2 points from a month ago.

Wheat ratings also declined in Oklahoma, Montana, the Dakotas, Nebraska and Colorado. Severe cold in Europe this week was also keeping attention on weather risks, although snow cover was expected to limit the impact of deep frosts in top wheat exporter Russia. Soybean prices are drawing support from scant rainfall in Argentina that continued to threaten harvest prospects in the No. 3 global producer after Brazil and the United States. However, the impact on global supply could be curbed by Brazil's harvest which some forecasters expect to hit a record volume. Soybean harvesting and planting of the main corn crop in Paraná, Brazil's second largest grain-producing state, sharply increased in the week to Monday, as farmers took advantage of a break from rains to speed up field work. Commodity funds were net buyers of CBOT corn, soybeans, wheat and soymeal futures contracts on Tuesday and net sellers of soyoil, traders said.

Grains prices at 0353 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 478.25 1.25 +0.26% +2.74% 459.07 67 CBOT corn 371.00 0.50 +0.13% +1.30% 361.23 76 CBOT soy 1054.00 4.50 +0.43% +0.62% 1010.30 80 CBOT rice 12.18 $0.02 +0.16% +0.08% $12.43 39 WTI crude 62.63 -$0.38 -0.60% -1.45% $63.15 54

Currencies

Euro/dlr $1.222 -$0.007 -0.57% -0.86% USD/AUD 0.7784 -0.006 -0.74% -0.78%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral Editing by Joseph Radford)