The most active corn contract for July delivery rose 8.5 cents, or 1.11 percent, to settle at 7.73 U.S. dollars per bushel. July wheat fell 3.5 cents, or 0.33 percent, to settle at 10.7125 dollars per bushel. July soybean gained 29 cents, or 1.67 percent, to settle at 17.69 dollars per bushel.
Soybean futures have once again charged ahead into new contract highs. On a nearby basis, spot soybean futures have traded at the highest price since September 2012.
Tight Midwest cash corn and soybean supplies amid the threat of a summer Central U.S. drought will underpin CBOT new crop futures. Amid a world that is extremely short of grain and oilseed stocks, any new crop yield loss would be explosive for CBOT valuations. Chicago-based research company AgResource holds that the upside price risks will be considerable.
U.S. Department of Agriculture (USDA) Export Sales report showed that U.S. corn export sales were 54 million bushels in the last week, a four-week high. Year-to-date old crop export commitments of 2,343 million bushels were down 14 percent year on year, but still the second largest commitment figure on record; year-to-date new crop corn sales were off 62 percent from a year ago.
U.S. exporters sold 17 million bushels of wheat for the 2022-2023 marketing year that started on June 1. Combined old and new crop exports totaled 13 million bushels.
U.S. exporters sold 16 million bushels of old crop soybeans, and new crop soybean sales reached a 13-week high of 22 million bushels, increasing the new crop sales volume to a record 467 million bushels. Total export commitments now stand at 2,203 million bushels.
U.S. weather pattern is changing as a high pressure ridge builds across the Central U.S. Extreme heat will build from south to north with a below normal Central U.S. rainfall pattern starting after the weekend. Immature crops can withstand this pattern initially, but beyond the first 10 days, the pattern will become adverse.
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