Chicago | Reuters — U.S. corn and soybean futures rose on Tuesday, bouncing back from two days of declines on bargain buying by investment funds and concerns about tight supplies of both commodities, traders said.
Wheat futures also firmed, with concerns about dry soils limiting U.S. and European production underpinning prices.
Corn and soybean futures found support at key technical points overnight.
“We go up and down here primarily off of money flow,” said Greg Grow, director of agribusiness at Archer Financial Services. “Hard breaks are continued to be looked at as buying opportunities.”
Chicago Board of Trade May corn futures ended up 11 cents at $5.80 a bushel and CBOT May soybeans were 7-1/2 cents higher at $13.89-1/2 a bushel (all figures US$).
New-crop contracts rose too, with traders saying big harvests of both crops were needed to satisfy the demand from domestic and export sectors.
“The job of the market is to incentive farmers to expand acreage over the next 45 days,” StoneX chief commodities economist Arlan Suderman wrote in a client note.
The U.S. Department of Agriculture said U.S. farmers were able to plant four per cent of their intended corn acreage as of Sunday, below the range of analyst estimates in a Reuters poll.
“The talk from the fields is that a lot of work is getting done, but farmers have stopped seeding corn until things warm up,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note.
CBOT May wheat rose 1-3/4 cents to $6.29-3/4 a bushel.
“Risks on the future crop related to weather conditions are still high. Experts are predicting a dry spell in coming weeks in the European continent. The water deficit is already in place on U.S. spring wheat areas in the north of the country,” French consultancy Agritel said in a note.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.