Chicago | Reuters — Chicago Board of Trade corn, soybeans and wheat rallied on Monday, with traders focused on forecasts for heat in the western U.S. Midwest that will quickly dry out soils in major production areas.
“The forward forecasts have the heat that is presently over the Pacific Northwest to move over the western corn belt early next week, and even touch parts of Iowa by the end of next week,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note to clients.
Some bargain buying also was noted after the market posted steep declines last week.
Chicago Board of Trade corn for December delivery was up 28 cents at $5.47-1/4 a bushel (all figures US$). The contract found technical support at its 100-day moving average.
CBOT November soybeans were 42-3/4 cents higher at $13.12-1/2 a bushel and broke through their 10-day moving average for the first time in two weeks.
Although weekend rain was heavy in some areas, other spots received just enough to protect the crop for a short amount of time.
“They bought time for crops,” Arlan Suderman, chief commodities economist at StoneX, said in a note to clients “(But) many areas only received enough rain to buy a week to 10 days for crops.”
CBOT soft red winter wheat was up 10-3/4 cents at $6.51-1/2 a bushel.
MGEX spring wheat for September delivery gained 27 cents to $8.35. The front-month contract hit its highest price since May 2013, with traders noting some reports that farmers in the northern Plains were abandoning some drought-damaged acres or cutting crops for hay.
Traders are awaiting key U.S. acreage and stocks data due on Wednesday from the U.S. Department of Agriculture.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.Tagged cbot, closing markets, Corn, drought, futures, heat, MGEX, Midwest, Plains, rain, soybean, USDA, Wheat