CHICAGO: Chicago grain and oilseed futures rose on Friday as severe cold in the US and other areas of the world raised fears about damage to crops and disruptions to processing plants.
Large corn sales kept the focus on the brisk export pace of that commodity, according to Jim McCormick, cofounder of AgMarket.net. The bitter cold temperatures in the US have also affected markets for soybeans and corn, said McCormick, as processing plants slow down, causing a spike in futures for products such as soymeal.
The cold forecast has also stirred fears of crop losses in wheat fields lacking snow cover.
Weather conditions in South America added support to soybeans, and hopes of further Chinese demand underpinned the market. Dryness in a southern swathe of Argentina is raising concerns about corn and soybean conditions there.
A rally in crude oil, after US President Donald Trump said a US armada was heading towards Iran, lent additional support to grains and soybeans, which are partly used for biofuel.
The most-active wheat contract on the Chicago Board of Trade was up 14 cents at USD5.29-1/2 a bushel. CBOT soybeans added 3-3/4 cents to USD10.67-3/4 a bushel but held below a three-week high touched on Thursday.
CBOT corn was up 6-1/2 cents at USD4.30-1/2 a bushel. An ongoing bout of severe cold in Russia, the world’s biggest wheat exporter, added to concerns. Consultancy Sovecon said on Thursday it could cut its forecast for Russia’s crop this year if the cold spell across the country persists for a week or longer.
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