Chicago | Reuters — Chicago Board of Trade corn and soybean futures rose on Wednesday, as concerns about dry conditions in key global production areas of South America boosted export prospects for both U.S. commodities.
Strength in the cash market also supported gains in corn and soybean futures, traders said.
CBOT soft red winter wheat ended lower, under pressure from profit taking after five straight days of gains. But concerns about parched soils in the Black Sea region underpinned the market and limited the declines.
“As it is the largest exporter, Russian weather and the possibility of a lower export quota next season are major concerns,” Rabobank said in a note.
Chicago Board of Trade December soft red winter wheat futures settled down 3/4 cent at $6.31-1/4 a bushel (all figures US$).
The Taiwan Flour Millers’ Association tendered to buy 88,635 tonnes of grade 1 milling wheat, sourced from the United States, European traders said.
CBOT December corn futures were up five cents at $4.13-3/4 a bushel. Prices peaked at $4.15-1/4, the highest on a continuous basis for the most-active contract since Aug. 12, 2019. Corn futures have risen for six of the past seven trading days.
Concern about crop weather in South America, as well as a drought-hit harvest in Ukraine, have coincided with strong U.S. exports fueled by Chinese purchases.
CBOT November soybeans were up eight cents at $10.72 a bushel, after flirting during the session with 2-1/2-year highs hit earlier this month.
Rains are expected in the coming week in Brazil and Argentina but may be light in some Brazilian growing belts, forecasts showed.
“For the moment the market is more focused on issues around drought, but if rainfall picks up during the South American season that could change things,” said Arthur Boy, an analyst at French corn farmers group AGPM.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.Tagged Black Sea, cbot, closing markets, Corn, exports, futures, Russia, South America, soybean, Taiwan, Wheat