Soybeans hit four-month high on hot, dry US crop weather

CHICAGO: U.S. corn and soybean futures rose on Monday as hot and dry weather expected in the nation's Midwest added to uncertainties about harvest prospects following lower-than-expected government planting estimates last week.

Soybeans touched a four-month high at the Chicago Board of Trade, while corn traded near last week's 3-1/2 month peak as the crop markets also drew support from demand from China.

In the United States, traders worried that unfavorable crop weather could threaten yields.

"An oppressive Midwest weather pattern lingers," said Matt Zeller, a market analyst for broker StoneX.

The most actively traded CBOT soybean futures were up 11 cents at $9.07-3/4 by 10:14 a.m. CDT (1514 GMT) after touching their highest price since March 5. Most-active corn was up 3 cents at $3.56-1/2 a bushel, but held below last week's high of $3.63.

The U.S. Department of Agriculture on Monday reported that exporters struck deals to sell 264,000 tonnes of old-crop U.S. soybeans and 202,000 tonnes of new-crop U.S. corn to China. The agency also reported a total of 182,880 tonnes in corn sales to Mexico for shipment in the 2020/21 and 2021/22 marketing years.

Traders are waiting for the USDA to update crop condition ratings in a weekly report due later on Monday. The agency, in a separate report last week, surprised traders by pegging this year's corn plantings well below trade estimates and its own previous estimate in March.

"Traders will continue to remain focused on weather maps this week as they try to decide how much weather premium should be added to these markets," broker Allendale said.

Wheat futures eased at the CBOT in a retreat from gains last week, traders said. The most-active contract was down 3-1/2 cents at $4.88-1/2 a bushel and touched its lowest price since June 30.