Chicago Agriculture Commodities All Finished Higher
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) Wheat, Corn and Soybean futures all finished higher Tuesday, as the USD showed weakness, and investors expected Soybean and Corn production in South America would be less than expected due to adverse harvest weather conditions.
Chicago Wheat led the gains as the most active Wheat contract for July delivery rallied 10 cents, or 2.09%, to 4.8775 bu.
Soybean for July delivery added 17.5 cents, or 1.73%, to 10.2725 bu.
July Corn delivery gained 5.5 cents, or 1.44%, to 3.8725 bu.
Chicago agriculture grains and Soybean advanced Tuesday for a 2nd straight session, bolstered in large part by a lower USD for the day.
The US Dollar (.DXY) Index lost more than 0.4% on the session, lifting US$-denominated commodities, especially Wheat.
July Soybean and Corn rallied strongly, supported by some forecasters lowering their outlooks for soybean output in Argentina, a major US rival for production and export of Soybean, and Brazil’s Corn production in MY 2016. Concerns over damage to the South American crop due to adverse harvest weather, fueled a flurry of buying by commodity funds in April.
Gains in the Corn market were capped by the fast pace of planting in the US Midwest.
The US Department of Agriculture(USDA) late Monday reported about 30% of the US Corn crop was planted as of 24 Apri, compared to 13% a week earlier. Approximately 16% of the crop was planted in the same frame a year earlier, while the 5-year average for this time of year is 16%.