Chicago Agriculture Commodities Finished Higher
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) Wheat, Corn and Coybean futures all finished sharply higher Tuesday, as investors expected Argentine Soybean production would be cut severely due to wet harvest weather.
Chicago Soybean led the gainers as the most active Soybean contract for July delivery rallied 31.75 cents, or 3.3%, to 9.9475 bu.
Wheat for July delivery added 13.25 cents, or 2.75%, to 4.9425 bu.
July Corn delivery gained 4.5 cents, or 1.17%, to 3.895 bu.
July Soybean jumped to the highest settlement since 22 July 2015, as rainfall continued to stall harvest activity in Argentina, a major US rival for production and export of Soybean.
Some commercial agriculture sources argue that Argentina’s Soybean crop ranges from 57-60 tonnes, down 2-4-M tonnes from their prior forecast, and some even expected that the production would be down as much as 10-M tonnes.
The mid-day weather forecast showed additional heavy rain will fall across the northeastern corner of Argentina, Uruguay and the southern Brazil.
Dry weather will continue 4-5 days into the weekend with a new cold front passing through on Sunday/Monday that would produce rain, according to the Global Forecast System.
US Wheat futures rose sharply for a 2nd straight session Tuesday as floor traders kept cutting their net short positions after the US Commodity Futures Trading Commission data showed speculators held a huge net short position.
Chicago grains and Soybean saw support from a lower USD on the day.
The US Dollar (.DXY) Index lost more than 0.4% during the session, lifting $-denominated commodities.