Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) Corn, Wheat and Soybean settled higher for their 5th day running Tuesday
The most active Corn contract for Jul delivery was higher of 0.5 cents, or 0.12%, to close at 4.2775 bu.
Jul Wheat delivery added 1.50 cents, or 0.30%, to settle at 5.09 bu.
Jul Soybean rose 3 cents, or 0.26%, to close at 11.4125 bu.
Agriculture analysts said that Corn and Soybean settled a little higher Tuesday as traders remained worried about the forecasts for hot weather in the US Midwest and Southern plain in the coming days.
The hot weather forecasts have heightened awareness to the expected La Nina event this Summer, Farm Futures Daily reported Tuesday, adding that the previous La Nina events have been linked to droughts.
The US Department of Agriculture (USDA) said Tuesday morning that private exporters reported export sales of 180,000 tonnes of Soybean for delivery to China during MY 2016/2017. Analysts noted that this data gave additional support to Soybean Tuesday. USDA already announced Monday export sales of of 125,000 tonnes of Soybean to unknown destinations.
As for Wheat, some agriculture analysts said that fresh fund short covering prompted wheat higher Tuesday. CBOT floor brokers reported that funds bought some 7,000 contracts of Wheat before mid-day, according to the report of a Chicago-based agriculture consultancy.
Outside the market, the USD fell Vs most major currencies Tuesday. In theory, a weaker Buck usually supports US agriculture commodities higher as the weaker USD make them cheaper in the international market.
As for Wheat, the Winter Wheat condition was rated by USDA at 62% as good to excellent, 1% lower than previous week but 19% higher than previous year, while 79% of Spring Wheat was rated as good to excellent condition, unchanged from previous week but much higher than prior year.
Soybean planted was 83%, also higher than the prior week and above 5-year average, while 72% of Soybean was rated as good to excellent, which was 3% higher than prior year.