The most active corn contract for July delivery soared 13 cents, or 2.15 percent, to settle at 6.1725 U.S. dollars per bushel. July wheat rose 3.5 cents, or 0.56 percent, to settle at 6.3375 dollars per bushel. July soybean fell 13.75 cents, or 0.99 percent, to settle at 13.7275 dollars per bushel.
Soybean sagged on profit taking following last week's nonstop rally.
Chicago-based research company AgResource's worry is that the dryness in U.S. Midwest will deepen and broaden over the next two weeks. This raises the need for above normal rainfall in July as corn heads into pollination starting around July 8. Subsoil moisture levels in Midwest are historically low. AgResource holds that any heat will quickly raise crop stress, and it is difficult to be bearish on breaks.
U.S. export inspections for the week ending June 8 were 46 million bushels of corn, 5.1 million bushels of soybean and 9 million bushels of wheat. Corn exports were better than expected and included four cargoes, or 203,000 metric tons, export to China.
The average analyst estimate is for U.S. corn and soybean ratings to drop 2 percent to 62 percent in corn and 60 percent in soybeans. Need for widespread soaking rain is immediate across the Midwest.
A mild and below normal rainfall pattern is expected to hold across the Central U.S. into June 22. Dry and warming weather starts on the weekend as a strong high pressure ridge builds across the Southwest U.S., while the large portion of the Midwest stays arid.
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