New York | Reuters – Chicago soybeans and corn rose on Monday after traders fretted that both markets were oversold, while continued dryness in the northern Plains helped boost futures further.
Wheat prices, however, fell.
Hot, dry weather in the U.S. Midwest has raised concerns about the outlook for crops for both corn and soybeans.
“We’re a little bit dryer for the northern Midwest and western Corn Belt, so that has supported trade,” said Terry Reilly, senior analyst with Futures International in Chicago.
The Chicago Board of Trade’s most-active November soybean futures ended 6 cents higher at $13.57-3/4 per bushel after earlier hitting a two-week low of $13.32.
A rally in palm oil helped lift the soyoil and soybean markets. Malaysian palm oil futures reversed earlier losses to jump more than 2% higher on Monday, as palm production fell more than 10 percent in July, traders say.
However, China’s soybean imports are set to slow sharply in late 2021 from a record first-half tally, confounding expectations for sustained growth from the top global buyer and denting market sentiment just as U.S. farmers look to sell their new crop.
The benchmark CBOT December corn futures contract rose 3-3/4 cents to $5.46-3/4 per bushel. It earlier fell to $5.32-1/4 a bushel, the lowest since July 13.
The U.S. Department of Agriculture on Monday reported weekly export inspections for wheat, corn and soybeans at 477,964 metric tons, 1.037 million metric tons and 220,986 metric tons, respectively.
Dealers said wheat prices fell with global supplies seen remaining ample despite concerns about crops in some areas.
CBOT September soft red winter wheat ended down 7 cents at $6.77 per bushel, easing on lackluster export demand for U.S. supplies and expanding harvest in the Black Sea region.
Russia’s southern region of Krasnodar, one of the largest wheat producing and exporting areas of the country, has harvested a record grain crop of 12.4 million tonnes, including 10.5 million tonnes of winter wheat, its governor said on social media.
The USDA also reported on Monday its weekly crop progress report across selected states. The United States has harvested 84 percent of winter wheat, up from 80 percent the same time last year. Seventy-six percent of the country’s soybeans are blooming, up from 74 percent last year, and 79 percent of the country’s corn is silking, unchanged from the same time last year.
– Additional reporting by Nigel Hunt and Naveen Thukral.