Glacier FarmMedia – A severe winter storm in the United States last weekend, as well as chilly relations between the U.S. and other countries affected prices on the Chicago Board of Trade during the week ended Jan. 28.
March soybeans rose 10.5 U.S. cents per bushel over the past week at US$10.75, while March corn gained 8.25 cents at US$4.30/bu. March Chicago wheat surged 28.25 cents to close at US$5.36/bu., its Kansas City hard red wheat counterpart added 22.25 cents at US$5.4225/bu. and March Minneapolis spring wheat was up 10.25 cents at US$5.74/bu.
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Jack Scoville of The Price Futures Group in Chicago said cold temperatures ahead of the storm’s arrival may have damaged crops in winter wheat-growing areas, putting a weather premium on prices.
“(Winterkill) was probably the biggest impact,” Scoville said, adding that lower winter wheat prices earlier this month were setting up for a rally eventually.
U.S. President Donald Trump recently threatened a number of countries, including Iran, Greenland and Canada, reducing confidence in the U.S. dollar. As a result, the currency weakened against its international counterparts. However, a lower dollar means cheaper exports and increased buying interest.
For the week ended Jan. 15, U.S. soybean and corn export sales reached marketing-year highs of 2.45 million tonnes and 4.01 million, respectively, said the U.S. Department of Agriculture. Wheat export sales exceeded trade expectations for the week at 618,100 tonnes.
“Both those numbers are very high. They did support commercial demand and they are supporting commercial demand now,” Scoville said. “If the U.S. dollar stays weak, I imagine (export) sales will be stronger.”
He anticipated prices to become stronger in the next week and beyond. The March soybean contract could surpass the US$11/bu. level just in time before the South American soybean harvest enters the markets. The March corn contract could move up to US$4.45/bu, Scoville added.
“(March Chicago) wheat could move back to (November 2025) highs, US$5.60 to US$5.65/bu. Prices would be up across the board,” he said.
