CBOT wheat rallies on Brazil trade deal, Midwest flooding

CHICAGO, March 20 (Xinhua) -- Chicago Board of Trade (CBOT) wheat futures rallied on Wednesday, obviously boosted by a new U.S.-BRAZIL Trade deal and concerns about flooding damage.

The most active wheat for May delivery was up 8.25 cents, or 1.81 percent to close at 4.6475 U.S. dollars per bushel. May corn was up 0.25 cent, or 0.07 percent, to settle at 3.715 dollars per bushel. May soybeans were up 2 cents, or 0.22 percent, to close at 9.06 dollars per bushel.

U.S. President Donald Trump and visiting BRAZILian President Jair Bolsonaro on Tuesday made a number of Trade-related commitments. According to a joint statement, BRAZIL will implement a tariff rate quota, allowing for the annual importation of 750,000 metric tons of American wheat at zero rate.

The Trade deal pushed up CBOT wheat futures as it will offer new export opportunity for U.S. wheat, as foreign wheat usually faces a 10-percent duty in BRAZIL unless it's grown in fellow Mercosur countries.

Additional support came from adverse weather. Heavy rain and rapidly melting snow have caused flooding that impacted many areas in the U.S. Midwest, with the farming states of Nebraska and Iowa hit hardest. The situation led to concerns over possible damage to grains there. Enditem