Chicago | Reuters — U.S. corn and soybean futures ended mixed on Monday, with old-crop contracts easing on some profit taking while new-crop contracts rose on concerns that hot and dry conditions in key growing areas of the U.S. Midwest could threaten crops as they pass through key stages of development, traders said.
“Forecasters expect crop stress to build in the northwest half of the Corn Belt over the next two weeks as rains fall short,” Arlan Suderman, chief commodities economist at StoneX, said in a note to clients.
The most-active corn and soybean futures contracts hit their highest since mid-May during overnight trading before turning lower. Soyoil futures hit their highest ever overnight but the most-active contract ended lower on profit taking.
Wheat futures fell, as MGEX spring wheat dropped 3.3 per cent from an eight-year high after rain provided some relief to parched Canadian crops.
Chicago Board of Trade July corn futures settled down 3-1/2 cents at $6.79-1/4 a bushel while new-crop December corn gained 11-1/4 cents to $6.02-3/4 (all figures US$).
“The July and August model runs had the western Corn Belt remaining dry and hot for the duration, something a tight balance sheet did not need to happen,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note to clients.
Global supply estimates for corn are already shrinking amid sustained dry weather in Brazil and strong purchases by China.
The U.S. Agriculture Department on Monday morning said that weekly export inspections of corn totaled 1.413 million tonnes.
CBOT July soybean futures were down 23-1/2 cents at $15.60-1/4 a bushel. CBOT November soybeans, which track the crop that will be harvested this fall, were up 4-1/2 cents at $14.40.
CBOT July soft red winter wheat futures fell 7-3/4 cents to $6.80 a bushel MGEX July spring wheat dropped 27-3/4 cents to $7.85.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Michael Hogan in Hamburg, Naveen Thukral in Singapore and Colin Packham in Canberra.Tagged cbot, closing markets, Corn, drought, futures, MGEX, soybean, Spring Wheat, Wheat