Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture commodities finished higher Monday to its highest since early October.
Soybeans rose, recouping losses from Friday as the focus shifted back to parched conditions in key crop belts in Argentina, with forecasts calling for hot, dry weather to continue in the week ahead.
Corn was also higher, reaching a near 2-month top, as brisk US export sales added to background support from the adverse crop weather in Argentina.
US grain prices also remained underpinned by the recent slide in the USD, although it bounced against other major currencies on Monday following a new 3-year low Friday.
The most-active Wheat contract on the CBOT rose 1.6% to 4.48 bu.
Investors are heavily Short Wheat futures. Short-term threat of Winter-kill remains low for US Wheat, but long-term risk for drought is growing.
Soybeans added 1.2 to 9.97 bu, after easing at the end of last week from a 7-week high just above 10.
Corn gained 0.6% to 3.58 bu. Dry conditions are threatening to cut production in Argentina, although big harvests in Brazil and the United States may limit the impact on world supply.
Satellite images were showing “alarmingly low vegetation density in Argentina”, according to Thomson Reuters Agriculture Research, while weather forecasts called for hot, dry conditions to continue into early February.
Corn drew additional support from US export demand. The US Department of Agriculture (USDA) reported higher than expected weekly Corn export sales Friday, while also announcing a separate 125,000 tonne sale of US Corn.
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