Chicago | Reuters – Chicago soybeans futures hit a two-week high on Wednesday as hot and dry weather in parts of the U.S. Midwest through early August threaten to degrade conditions during a crucial soybean plant development phase.
Wheat eased as an agreement to reopen Ukrainian maritime grain exports moved forward, despite recent missile attacks from Russia on port facilities in Odesa and Mykolaiv.
Corn futures traded near even, pressured by wheat but underpinned by eroding U.S. crop conditions.
The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) gained 26-1/4 cents to $14.10 a bushel, after reaching $14.16-1/2 a bushel, its highest since July 12.
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Corn Cv1 added 2-1/4 cents to $6.03 a bushel while wheat Wv1fell 13-1/2 cents to $7.90-1/4 a bushel.
Recent rainfall across parts of the U.S. Midwest aided corn crops during pollination, but a lack of moisture in upcoming forecasts could hurt soybean plants as they develop pods, said Brian Hoops, senior market analyst at Midwest Market Solutions.
“The forecast in August is for hot, dry conditions, which would rob yields on soybeans. With balance sheets already extremely tight, we can’t afford to lose any yields in the soy complex.”
Wheat futures were pressured as a grain coordination center is being established in Istanbul to coordinate Ukrainian grain exports under a deal signed by Russia and Ukraine on Friday and brokered by Ankara and the United Nations.
“They’re saying that grain could be flowing later this week. That’s got the wheat market under pressure,” said Jeff French, Owner of AgHedgers.
Russia’s Deputy Foreign Minister said on Wednesday the deal could collapse if obstacles to Russia’s agricultural exports were not promptly removed, Interfax reported.
– Additional reporting by Naveen Thukral and Sybille de La Hamaide.
