Corn at 6-week high as heat curbs U.S. yields; soy, wheat also rise


Article content

SINGAPORE/PARIS — Chicago corn jumped to

its highest in more than a month on Tuesday, gaining 2.4% after

a U.S. government report showed crop conditions had worsened

amid hot and dry weather in key regions across the Midwest.

Wheat rose 1.7%, extending strong gains made in the two

previous sessions, while soybeans added nearly 1%.

“The market has focussed on reports coming from scouts in

the western Midwest,” said Tobin Gorey, director of agricultural

strategy at the Commonwealth Bank of Australia.

Article content

“Crop problems are suspected of being greatest in that

region, and the reports coming back so far (are) mostly bad.”

The Chicago Board of Trade (CBOT) most-active corn contract

was up 2.4% at $6.44-3/4 a bushel as of 1050 GMT, after

climbing earlier in the session to the highest since July 11 at

$6.44-3/4 a bushel.

Wheat rose 1.7% to $8.01-1/2 a bushel, and soybeans

added 0.9% to $14.48 a bushel.

Condition ratings for corn and soybeans declined in the

latest week, the U.S. Department of Agriculture (USDA) said

after the market closed on Monday, bucking analyst expectations

for no change as stressful dry conditions continued to impact


In its weekly crop progress report, the USDA rated 55% of

the U.S. corn crop in good-to-excellent condition, down from 57%

Article content

the previous week. For soybeans, the government rated 57% of the

crop as good-to-excellent, down from 58% previously.

South Dakota corn yields were projected at 118.45 bushels

per acre (bpa), the Pro Farmer Midwest Crop Tour said on Monday,

the worst on the tour since 2012 and well below the 2021 crop

tour average of 151.45 bpa and the three-year crop tour average

of 161.59 bpa.

“The evolution of crop conditions remains an important

element to follow, especially as the counts in the U.S. fields

show a lower yield potential than last year,” French consultancy

Agritel said in a note.

The European Union’s crop monitoring service MARS on Monday

also lowered its yield forecasts for summer crops in the bloc,

with major cuts in maize (corn), sunflower and soybeans, as it

Article content

expected further damage from the recent dry and hot weather.

Crop prospects in the EU have taken on extra significance

this year as Russia’s invasion of Ukraine – a major wheat, corn

and sunflower exporter – has disrupted Black Sea exports.

Russian grain exports remain below their usual pace, raising

concerns about storage space, according to analysts.

A total of 33 cargo ships carrying around 719,549 tonnes of

foodstuffs have left Ukraine under a deal brokered by the United

Nations and Turkey to unblock Ukrainian sea ports, the

agriculture ministry said on Tuesday.

Commodity funds were net buyers of CBOT soybean, wheat,

soymeal, corn and soyoil futures contracts on Monday, traders


Prices at 1030 GMT

Last Change Pct


CBOT wheat 801,50 13,25 1,68

CBOT corn 644,75 15,75 2,50

CBOT soy 1448,00 12,75 0,89

Paris wheat 323,25 6,50 2,05

Paris maize 320,50 8,00 2,56

Paris rapeseed 617,50 -5,25 -0,84

WTI crude oil 92,03 1,67 1,85

Euro/dlr 0,9916 0,00 -0,25

Most active contracts – Wheat, corn and soy U.S.

cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips

and Jan Harvey)


Source link

Comments are closed.