Wheat futures saw a rise in overnight trading due to concerns about the condition of crops in France and short covering. The French wheat crop’s good or excellent condition dropped to two-thirds from 94% compared to the previous year. This marks the lowest rating for this time of year since 2020. Investors who had bet on lower prices may have bought back contracts and closed some of their positions, leading to the increase in wheat futures. Money managers have been covering shorts in corn and soybeans in recent weeks, resulting in a decrease in net short positions. However, weak demand continues to put pressure on prices, with wheat exporters reporting net negative sales and signs of weak demand.
Meanwhile, cattle on feed in the U.S. rose by 1% year over year, with placements reaching a record high in the previous month. The USDA reported that about 11.8 million cattle and calves for the slaughter market were on feed at the beginning of March, with placements in February totaling 1.89 million head, the highest for the month since record keeping began in 1996. The report also detailed the distribution of placements by weight categories.
As a result of these developments, wheat futures for May delivery rose to $5.59 a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 3¢ to $5.93 1/2 a bushel. In contrast, corn futures lost 1 1/4¢ to $4.38 a bushel, and soybean futures for May delivery fell 1/4¢ to $11.92 1/4 a bushel. Soymeal lost $1.90 to $337.20 a short ton, and soy oil gained 0.39¢ to 48.03¢ a pound.
