The most active corn contract for December delivery fell 15.5 cents, or 2.54 percent, to settle at 5.9425 U.S. dollars per bushel. September wheat plunged 25.5 cents, or 3.19 percent, to settle at 7.7475 dollars per bushel. November soybean lost 19.5 cents, or 1.39 percent, to settle at 13.865 dollars per bushel.
CBOT agricultural futures extended correction on geopolitical uncertainty. There is also continued optimism over improved Ukrainian logistics in the near term. Chinese demand for U.S. soybeans is typically rather strong in August, and all eyes will be on Chinese importer activity in the weeks ahead.
Chicago-based research company AgResource's long-term thesis hinges upon global corn production falling short of consumption in crop year 2022-2023, while record South American soybean yields are needed to build global soybean stocks.
European drought will be unrelenting into the latter part of August as heat returns with vigor to Spain, France, Germany and Italy this week. Much of Europe's Corn Belt is experiencing 2012-like conditions with limited relief expected. Europe will remain an active buyer of Brazilian corn amid uncertainty over the size and pace of Ukrainian shipments.
The entirety of the North American climate into August 15 hinges upon the placement intensity of high pressure ridging. An amplified ridge is kept in place aloft the Central Plains and Western Midwest throughout the next 10 days, which will confine precipitation strictly to areas east of the Mississippi River.
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