May wheat futures up as much as 4.4% to $4.47 1/2 a bushel in Chicago.
Intraday advance is biggest since Aug. 2
Prices are rebounding from May contract record low reached Monday
NOTE: Winter-wheat conditions in Texas drop, USDA data showed Monday
Texas good/excellent rating lowered to 28% from 36%
Futures also climb amid short covering, Terry Reilly, senior commodity analyst for grain and oilseeds for Futures International in Chicago, says by telephone
There was also news today that Ukraine’s wheat crop is coming in ahead of expectations so there is no global shortage of the commodity. Nevertheless, there is clear evidence of a short-term oversold condition and today’s upward dynamic is the first positive news for wheat in months. Potential for some additional short covering has certainly improved.
Soybeans has paused in the region of the trend mean over the last three months and is now showing initial signs of firming from the lower side of the range. It is going to need to sustain a move back above the trend mean to confirm a return to demand dominance.
Corn has been ranging mostly below $4 since 2014. We generally see rallies in the front month into the contract change in May/June and the price is currently firming from the lower side of the range.