The most active corn contract for December delivery rose 11.25 cents, or 1.92 percent, to settle at 5.9625 U.S. dollars per bushel. September wheat soared 32 cents, or 3.98 percent, to settle at 8.365 dollars per bushel. November soybean gained 42.75 cents, or 3.23 percent, to settle at 13.655 dollars per bushel.
CBOT grain futures were sharply higher on improved U.S. export demand, strong domestic biofuel margins and concerning Central U.S. weather forecasts. "Risk on" is the theme of the day. Agricultural markets appear cheap comparatively to existing fundamentals.
Recessionary worry produced the 2-week CBOT break. Lower U.S. soybean seeding and a seasonal low in wheat look to maintain a bullish trend. As China's feeding margins remain profitable, Chicago-based research company AgResource holds to a bullish price trend.
In the past few years, China has purchased sizeable tonnages of French wheat for feeding/milling purposes. U.S. soft red winter wheat is far cheaper than French offers.
CONAB trimmed estimate of 2022 Brazilian soybean crop to 124 million metric tons, down 300,000 metric tons from last month. The Brazilian total corn crop was forecast at 115.7 million metric tons, up 500,000 metric tons from June.
Latest comments