Soybeans at 1-month high, corn firm as hot, dry weather hits US crops
SINGAPORE: Chicago soybeans rose 1.5% on Monday to a one-month high, while corn gained ground after a US farm survey found that hot and dry weather conditions stressed both crops, which could result in smaller harvests than the government had predicted.
Wheat also rose amid concerns over global grain supplies.
“We have seen largely favourable crop weather for corn and beans in July and parts of August, but it has been dry over the last couple of weeks,” said one Singapore-based trader.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 1.4% at $14.06-3/4 a bushel, as of 0257 GMT.
Corn rose 1% to $4.93 a bushel and wheat gained 0.4% at $6.24-1/4 a bushel. Soybeans climbed to $14.10 a bushel earlier in the session, the highest since July 27.
Prices are up nearly 10% from a low on Aug. 8. There are forecasts of more hot and dry weather in the US Midwest, which could further reduce production.
Soybeans are in a crucial stage of development and susceptible to damage from extreme temperatures. US 2023 soybean production could total 4.110 billion bushels, advisory service Pro Farmer said on Friday, below most recent estimate from the US Department of Agriculture (USDA) at 4.205 billion bushels.
Pro Farmer also predicted the US corn crop at 14.960 billion bushels, below the USDA’s estimate of 15.111 billion bushels.
Also supporting soybeans was confirmation by the USDA of private sales of 120,000 metric tons of US soybeans for delivery to China, indicating strong demand.
China’s soymeal prices climbed more than 3% on concerns over supplies in the world’s biggest importer of soybeans.
However, the return of the El Nino weather phenomenon should boost South American soybean production as more rainfall helps farmers, meteorologists and grain analysts say.
Brazil could set a new soybean production record of around 160 million metric tons in the 2023/24 cycle and Argentina’s soy output could almost double, according to analysts.
Meanwhile, the Philippine weather bureau said Tropical storm Saola had intensified into a super typhoon, raising the threat of heavy rain and strong winds hitting important rice and corn growing areas.
On supplies from the war-torn Black Sea region, a senior US official said the United States sees viable routes to export Ukrainian grain through the country’s territorial waters and overland.
A second vessel has left Ukraine’s Odesa port through a temporary Black Sea corridor, a senior Ukrainian government official said on Sunday. Ukraine’s grain exports stood at 4 million metric tons in the 2023/24 July-June season, as of Aug. 25, Agriculture Ministry data showed on Friday.
Ukraine had exported 3.3 million tons of grain at the same date in 2022.
Large speculators increased their net short position in Chicago corn and wheat in the week to Aug. 22 while raising their long position in soybeans, data showed on Friday.
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