The most active corn contract for December delivery rose 7 cents, or 1.16 percent, to settle at 6.1075 U.S. dollars per bushel. September wheat soared 36 cents, or 4.63 percent, to settle at 8.1275 dollars per bushel. November soybean gained 38 cents, or 2.83 percent, to settle at 13.8025 dollars per bushel.
CBOT grain prices were sharply higher as traders react to sliding Northern Hemisphere grain production due to extreme heat while a sinking U.S. dollar sparked a fresh appetite for risk. The volume of CBOT has expanded with short covering noted in wheat.
Uncertainty abounds. Weather will be stripping yield potential from Europe and a sizable portion of the U.S. corn and soybean belt, while macro concerns will continue indefinitely as questions over Black Sea grain export and European energy supplies will go unanswered until at least this week. Chicago-based research company AgResource holds that it is unlikely a lasting trend is established until late July or early August.
There has been talk that China has booked 6-8 cargoes of Brazilian soybeans for February/March.
U.S. weekly export inspections for the week ending July 14 were 42 million bushels of corn, as against 38 million bushels in the previous week; 13 million bushels of soybeans, higher than the previous week; and 7 million bushels of wheat, as against 11 million bushels in the prior week.
For respective crop years to date, U.S. exporters have inspected for export 1,980 million bushels of corn, down 17 percent from last year; 1,930 million bushels of soybeans, down 9 percent; and 77 million bushels of wheat, down 23 percent.
There is a meandering high pressure aloft the Central United States throughout the next two weeks. Scattered showers will continue to ride along the northern and eastern edges of this ridge. Precipitation accumulation elsewhere will fall short of evaporation rates. There is not yet any indication that this upper air pattern will be disrupted.
Latest comments