The most active corn contract for March delivery rose 7.25 cents, or 1.53 percent, to settle at 4.8025 U.S. dollars per bushel. March wheat soared 20 cents, or 3.25 percent, to settle at 6.3625 dollars per bushel. March soybean gained 12.75 cents, or 0.98 percent, to settle at 13.19 dollars per bushel.
Wheat soared on fund short covering. U.S. wheat futures will benefit most from changing capital flows should the U.S. dollar continue to weaken in early 2024. Broadly, price action on Tuesday is viewed as book squaring.
The lack of volume is exacerbating intra-day moves as expected. Chicago-based research company AgResource holds that the strategy remains to advance cash sales only on strong rallies.
U.S. export inspections in the week ending Dec. 21 were 43 million bushels of corn, as against 38 million bushels in the previous week and a three-week high; 39 million bushels of soybeans, as against 52 million bushels in the previous week; and 16 million bushels of wheat, as against 10 million bushels in the previous week and the highest since late September.
For respective crop years to date, the United State has inspected for export 442 million bushels of corn, up 26 percent from last year; 818 million bushels of soybeans, down 18 percent; and 343 million bushels of wheat, down 21 percent year on year.
There is another 4-5 day period of heat and dryness in Brazil before regular rains return in early January. Weather forecast maintains a shift to regular rain in northern Brazil beginning Dec. 31 or Jan. 1. It will be more difficult to sustain drought in northern Brazil in January and February.
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