By Julie Ingwersen
CHICAGO, July 14 (Reuters) – U.S. corn and soybean futures hit their highest in additional than every week on Wednesday as forecasts referred to as for dry climate within the Midwest crop belt subsequent week and continued dryness within the northern Plains, threatening crop prospects, analysts mentioned.
As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Commerce December corn CZ1 was up 16-1/Four cents at $5.57 per bushel, after reaching $5.62-3/4, its highest since July 2.
CBOT August soybeans SQ1 have been up 35-1/2 cents at $14.50-1/Four a bushel, with new-crop November SX1 up 27-1/Four cents at $13.79.
“The 2-week forecast simply does not have the rains for the northern Plains and Canada,” mentioned Dan Cekander, president of DC Evaluation. Whereas outlooks referred to as for useful showers this week in parts of the Midwest corn belt, some areas could miss out.
“Subsequent week is a dry week. You’re going to be going deep into July with fairly minimal rains. It is simply not supreme,” Cekander mentioned.
July is the principle interval for corn pollination, a key part in figuring out yield, whereas August is extra necessary for soybeans.
Considerations persist about drought within the northern Plains and Canada.
“Dry climate is predicted to proceed within the northern Plains for at the least the subsequent 10 days, which can keep extreme stress on spring wheat, corn, and soybeans … Temperatures may even be growing throughout the northern Plains subsequent week, including warmth stress to crops,” house know-how firm Maxar mentioned in a day by day climate observe.
Minneapolis Grain Alternate spring wheat futures rose, with the benchmark September contract MWEU1 up 12-1/Four cents at $8.74 a bushel after setting a life-of-contract excessive at $8.78-1/4.
CBOT smooth crimson winter wheat futures posted even bigger positive aspects, with the September contract WU1 up 20 cents at $6.53-3/Four a bushel, reflecting fund-driven short-covering. Commodity funds maintain a web brief place in CBOT wheat, leaving that market susceptible to bouts of short-covering.
A setback within the greenback .DXY lent help, making U.S. grains extra engaging on the export market. The greenback fell after Federal Reserve Chair Jerome Powell mentioned in remarks ready for Congress that the economic system was “nonetheless a methods off” from ranges the central financial institution needed to see earlier than tapering its financial help. USD/
(Extra reporting by Nigel Hunt in London and Naveen Thukral in Singapore; Enhancing by Subhranshu Sahu, Kirsten Donovan and Steve Orlofsky)
(([email protected]; 1-313-484-5283; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.