The most active corn contract for December delivery rose 16 cents, or 2.65 percent, to settle at 6.19 U.S. dollars per bushel. September wheat soared 26.75 cents, or 3.39 percent, to settle at 8.17 dollars per bushel. November soybean gained 30.5 cents, or 2.16 percent, to settle at 14.405 dollars per bushel.
Global agricultural markets were higher as there is no sign that needed rain and cooler temperatures lie in the offing prior to mid-August, and on confirmation that U.S. GDP contracted for a second consecutive quarter. With the Federal Reserve not meeting again until September, agricultural markets will be free to trade existing fundamentals, including a rapid decline in Northern Hemisphere corn production, and the potential for sizeable U.S. soybean yield loss.
Market fears are now centered on weather and the potential for sizable yield loss, following guaranteed corn yield loss in Europe, Chicago-based research company AgResource noted. Premium will be added until signs of a pattern shift emerge.
U.S. export sales data were mixed. Old crop corn sales through the week ending July 21 were 6 million bushels, as against one million bushels in the prior week. Net soybean cancellations, mostly from China and unknown, of 2 million bushels were recorded, following sales of 7 million bushels in the previous week. The new crop marketing year of soybean is still 5 weeks away.
U.S. wheat sales totaled 15 million bushels in the week, as against 19 million bushels in the previous week.
Weather forecast kept meaningful precipitation into mid-August confined to the Southern Plains, Delta and mid-South. Regional flood risk is elevated in portions of Arkansas, Tennessee and Kentucky. An intense and expansive ridge triggers near complete dryness and dangerous heat across the Central Plains and Western/Upper Midwest on Aug. 1-10. Flash drought lies ahead for the western U.S. agricultural belt.
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