The most active corn contract for December delivery rose 5.75 cents, or 0.92 percent, to settle at 6.29 U.S. dollars per bushel. December wheat soared 17.25 cents, or 2.24 percent, to settle at 7.8825 dollars per bushel. November soybean gained 31.25 cents, or 2.23 percent, to settle at 14.3525 dollars per bushel.
Wheat went higher on talk that China booked 5 cargoes of French wheat, and soybeans rallied on U.S. soymeal demand amid thinning Argentine FOB offers. The hefty premiums paid for U.S. old crop soybeans/corn are underpinning valuations.
Harvest in the Southern Midwest starts. Chicago-based research company AgResource warns this is no place to chase a rally.
China is said to have booked 5 cargoes of French wheat for November/December delivery, with inquiries out for Australia, Canadian and U.S. soft red winter (SRW) wheat off the PNW Coast. The Chinese demand has sparked a new round of short covering.
U.S. grain export inspections for the week ending Aug. 18 were 29.1 million bushels of corn, 25.2 million bushels of soybeans and 21.8 million bushels of wheat. For respective crop years to date, the United States has shipped out 165 million bushels of wheat, down 22 percent year on year; 2,118 million bushels of corn, down 18 percent; and 2,057 million bushels of soybeans, down 5 percent. U.S. old crop soybean exports were stronger than expected with China a noticeable shipper.
A broad ridge/trough pattern holds across the United States for another two weeks. The Central U.S. weather forecast is dry this week with the net chance of rain being on Sunday/Monday in the North Central Midwest. The forecast remains generally favorable except for Nebraska and Kansas where the drought is set to worsen.
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