HAMBURG: Chicago soybean futures on Monday rose to their highest since June and corn also gained on concerns over possible reduced supplies from weather-damaged South American harvests.
Wheat was underpinned by Black Sea political tension. Markets are also positioning ahead of world grain and oilseed supply and demand forecasts from the U.S. Department of Agriculture (USDA) on Wednesday.
Chicago Board of Trade most-active soybeans hit their highest since June 2021 at $15.79-1/4 a bushel. Soybeans were up 1.4% at $15.75-1/2 a bushel as of 1150 GMT.
Corn rose 1.3% to $6.28-3/4 a bushel. Wheat gained 1.1% to $7.72 a bushel.
"Soybeans and corn are being strengthened today by the continued worry that bad weather will cut South American crops and so export volumes at a time of tight U.S. supplies," said Matt Ammermann, StoneX commodity risk manager. "The focus on South America is now moving from Brazil to Argentina ahead of the new crop forecasts by the USDA later this week."
South American corn and soybean crop estimates have been cut after adverse weather ranging from drought, heatwaves to excessive rain.
Soybeans rise on South American crop shortfall; corn, wheat up
This week's USDA crop supply and demand reports are expected to show tighter grain and oilseed supplies and smaller crops in Brazil and Argentina.
Argentina's soybean crop faces a make-or-break period ahead as the risk of drought creeps back, with rainfall "erratic" and heavy rain looking unlikely until the second half of February, the Rosario grains exchange said.
"Wheat continues to receive support from political tension between Russia and Ukraine, with concern a possible conflict could disrupt Black Sea wheat exports," Ammermann said.
"Grains and soybeans are also receiving support from the fear of inflation now in focus in the outside financial markets. If markets fear inflation, they commonly trade this by investing in grains and energy commodities."
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