Chicago | Reuters – Chicago corn and soybean futures extended gains on Thursday, as expectations for hot and dry weather conditions in the coming weeks across parts of the U.S. Midwest threaten yields.
Wheat followed higher as there was still some uncertainty about the volume of Ukraine’s exports through the Black Sea despite expectations they could start to resume within days.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 climbed 30-1/2 cents to $14.40-1/2 a bushel, after rising earlier in the session to $14.46-3/4a bushel, its highest since July 1.
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Corn Cv1 gained 16 cents to $6.19 a bushel, after reaching its highest since July 18, while wheat Wv1 added 26-3/4 cents to $8.17 a bushel.
U.S. corn and soybeans have enjoyed seasonably cool, wet weather this week, with much of the U.S. corn crop pollinating during the month of July, though a hot and dry forecast for early August has farmers concerned.
“Corn made it through pollination without a major weather scare,” said Dan Hussey, senior market strategist at Zaner Group. “The focus is shifting more toward the weather market for beans, filling out pods in August.”
Lack of moisture could hurt soybean plants as they develop pods.
Wheat inched higher, but has remained rangebound since mid-July.
“We’ve just trended sideways the last couple of weeks,” said Joe Vaclavik, president of Standard Grain. “This is just run of the mill volatility for a market that just dropped 40% in the course of two months.”
Wheat remains underpinned by uncertainty over the first shipment of grain from a Ukrainian Black Sea port, which could depart as early as Friday, a U.N. official said, although “crucial” details for the safe passage of vessels were still being worked out.
“The reality of that situation coming to fruition is not entirely guaranteed,” said Hussey. “Nobody really knows how to price that into the market.”
– Additional reporting by Naveen Thukral and Sybille de La Hamaide.
