Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Monday, weather concerns sparked a rally in US Wheat and Soybean futures with forecasts for dry conditions threatening to reduce harvests in Key growing areas, traders said.
Chicago Board of Trade (CBOT) soft red winter Wheat futures jumped 3.4% to their highest since 8 August on concerns about dryness damaging the dormant crop in the US Plains.
Soybean futures rose 1.9% and settled above the Key 10.00 bu benchmark for the 1st time since 6 December, as the latest outlook calls for continued dryness in Argentina, the 3rd largest Soybean exporter.
Soymeal futures also surged, gaining 4.2% on the Argentine weather forecast. Argentina is the top exporter of Soybean Meal.
The strength in Wheat and Soybeansspilled over into the Corn market but the yellow grain’s gains were capped by technical selling when prices neared the 5.5-month high hit last week.
Traders shrugged off news that China, the world’s top buyer of Soybean, canceled export deals to buy 455,000 tonnes of US Soybean for delivery during MY 2017-18.
March Soybean futures settled up 18.75c at 10.0175 bu.
After rain late last week calmed investor worries about crop damage in Argentina, forecasts calling for a drier week ahead and potentially scorching temperatures stirred up the market again Monday.
Strong weekly export data also underpinned the Soybean market.
Monday morning the USDA reported weekly Soybean export inspections of 1.319-M tonnes, topping analysts’ forecasts that ranged from 800,000 to 1.1-M tonnes. Wheat export inspections were 487,902 tonnes and Corn export inspections were 835,131 tonnes, in line with a range of analysts’ forecasts.
March soft red winter Wheat settled up 15c at 4.64 bu.
March Corn futures were 5c higher at 3.67 bu.