Chicago | Reuters — Chicago soybean futures on Monday rose to eight-month highs, underpinned by concerns over possible reduced supplies from weather-damaged South American harvests.
Corn also climbed on South American dryness, while wheat followed higher.
Markets are also positioning ahead of world grain and oilseed supply and demand forecasts from the U.S. Department of Agriculture (USDA) on Wednesday.
Chicago Board of Trade most-active March soybeans ended up 28-1/4 cents at $15.81-3/4 per bushel after reaching $15.89-1/2 per bushel, its highest since June 8, 2021 (all figures US$).
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Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.
Corn added 14-3/4 cents to $6.35-1/4 per bushel, notching a 2.58 per cent increase, its biggest daily gain since Jan. 4.
CBOT wheat gained 5-1/2 cents to $7.68-3/4 per bushel.
“We still have weather concerns about South America, and their forecast doesn’t seem to be getting better for the areas that need to get better,” said Ted Seifried, vice-president of Zaner Group.
Weather forecasts show continued dryness across crop-growing regions of Argentina and Brazil for the coming two weeks, reinforcing recent reduced crop estimates by private consultants.
This week’s USDA crop supply and demand reports are also expected to show tighter grain and oilseed supplies and smaller crops in Brazil and Argentina.
Argentina’s soybean crop faces a make-or-break period ahead as the risk of drought creeps back, with rainfall “erratic” and heavy rain looking unlikely until the second half of February, the Rosario grains exchange said.
South American weather concerns are driving export business to the United States at a time when export demand generally shifts to Brazil and Argentina.
Private exporters reported the sale of 507,000 tonnes of soybeans to unknown destinations, Monday morning, USDA said.
“We’re making up lost ground,” said Don Roose, president of U.S. Commodities, noting that China often renews purchases following the Lunar New Year holiday.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
