U.S. wheat futures rally to 6-month peak on harvest concerns

Investing.com - U.S. wheat futures rallied to a six-month high on Monday, amid speculation excessive rainfall in the U.S. Midwest will damage crops and delay the pace of the harvest.

On the Chicago Mercantile Exchange, US wheat for September delivery hit an intraday peak of $5.7740, a level not seen since January 8, before trading at $5.6838 during U.S. morning hours, up 0.38 cents, or 0.07%. On Friday, wheat prices soared 30.2 cents, or 5.69%.

According to data from the National Weather Service, up to six times the normal amount of rain has fallen in parts of the Midwest over the past two weeks, and more precipitation is in the forecast for the coming days.

Nearly 19% of the U.S. winter-wheat crop was harvested as of June 21, according to the U.S. Department of Agriculture, trailing the five-year average of 31% for this time of year.

Later in the day, the USDA will release updated crop progress numbers for the week ended June 28.

Meanwhile, US corn for September delivery tacked on 0.93 cents, or 0.24%, to trade at $3.9413 a bushel after touching a session high of $3.9688, the most since March 31.

Corn tracked strong gains in wheat, as both grains are linked because both can be used as animal feed.

Approximately 71% of the corn crop was in good to excellent condition as of June 21, according to the USDA, down from 73% in the preceding week.

Elsewhere on the Chicago Board of Trade, US soybeans for August delivery inched down 0.75 cents, or 0.08%, to trade at $9.9625. Prices of the oilseed rallied to $10.0240 earlier in the day, the strongest level since March 2, amid growing concerns over U.S. crop conditions.

The USDA said that nearly 65% of the soybean crop was in good to excellent condition as of June 21, compared to 72% in the year-earlier period.

Almost 90% of the soybean crop was planted as of last week up, below the five-year average of 95% for this time of year, while soybean emergence was 84% complete, trailing the five-year average pace for the week of 87%.

Market players are looking ahead to a pair of key reports from the U.S. Department of Agriculture on acreage and quarterly stocks due on Tuesday.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.