CHICAGO: Chicago corn futures extended gains on Tuesday on short-covering and US crop condition questions, while soybean prices also turned higher on strength in the vegetable oil and meal markets, traders said.
The condition of the US corn crop deteriorated in the latest week while national soybean ratings held steady after floods swamped portions of the northwestern Midwest, government data showed on Monday.
But some meteorological models are predicting the western Corn Belt in the US Midwest could face dry weather and high heat in late July or early August, which could impact soybean pod setting.
“If you have a super wet crop, and it turns super hot, that’s about as bad of a weather picture as it can get for beans,” said Angie Setzer, a partner at Consus Ag Meanwhile, profit-taking sent wheat futures heading lower from the previous session’s one-week high. The most active corn contract on the Chicago Board of Trade (CBOT) had added 0.12% to $4.21 a bushel by 1614 GMT, having climbed more than 3% in the previous session. Wheat was down 1.61% to $5.80-3/4 a bushel while soybeans gained 0.23% to $11.13-1/2 a bushel. Corn traders continued to wrestle with last week’s acreage report from the US Department of Agriculture, given the agency in recent years has overstated corn acres in its June reports.
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