The most active corn contract for December delivery rose 18.75 cents, or 2.82 percent, to settle at 6.83 U.S. dollars per bushel. December wheat soared 37.5 cents, or 4.66 percent, to settle at 8.4275 dollars per bushel. November soybean fell 23.5 cents, or 1.61 percent, to settle at 14.3775 dollars per bushel.
Corn futures have scored fresh two-month highs from the lingering bullish fundamental impact from last week's Pro Farmer Crop Tour which pegged the U.S. 2022 yield at 168.1 bushels per acre (BPA). Soybean futures were sharply lower on the potential record large U.S. crop and slowing Chinese demand. Wheat rallied on short covering.
It is the end of the month and fund managers are squaring positions due to the complexity of the agricultural markets ahead. The U.S. and world economy is in decline due to the war by central banks against inflation. Chicago-based research company AgResource suggests selling a further 15-25 cent rally in new crop corn, wheat and soybean futures.
U.S. Department of Agriculture (USDA) did not announce any fresh daily export sales Monday.
USDA export inspections for the week ending Aug. 25 were 27.1 million bushels of corn, 16.0 million bushels of soybeans and 19.1 million bushels of wheat. For respective crop years to date, the United States has exported 2,149 million bushels of corn, down 17 percent year on year; 2,073 million bushels of soybeans, down 4.5 percent; and 184 million bushels of wheat, down 20 percent.
Statistics Canada estimates pegged Canada wheat crop at 34.6 million metric tons, 10.3 million metric tons larger than last year. Surprisingly, Canadian corn production was record large at 14.8 million metric tons, up 800,000 metric tons from 2021. Canadian corn imports will be sharply reduced in the year ahead which will place added importance on Chinese demand for U.S. corn going forward.
Additional showers are slated for Eastern Midwest in the next 36 hours before a drier pattern evolves for the week and holiday weekend. Temperatures will average near to above normal with the warmest readings in the Plains and Delta. The extended period of warm/dry weather will help push crop maturity. Weather forecast has normal rains for the Gulf States this week with the harvest to resume Tuesday.
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