BEIJING: Chicago grain and oilseed futures fell on Thursday as beneficial weather in the US Midwest favoured early crop germination and potential yields.
The most-active corn contract on the Chicago Board of Trade (CBOT) dropped 0.4percent to USD4.63-3/4 a bushel by 0309 GMT. Soybeans fell 0.2percent to USD11.97 a bushel, while wheat lost 0.8percent to USD6.55 a bushel.
Rains have boosted soil moisture in the Midwest, favouring early germination of crops, forecaster Vaisala said. Next week, warmer-than-normal temperatures in the northern Midwest should accelerate early growth, the firm said.
Globally, climate risks to grain production are elevated as an El Nino event is increasingly likely to emerge from mid-2026, according to Fitch Group’s BMI Consultancy. “We expect wheat production to be amongst the more exposed grain markets under the projected El Nino event, with risks heightened by crop-calendar overlap across India, Pakistan, Australia, Mainland China and Argentina,” the consultancy said in a note.
Traders also monitored potential for rain in the drought-hit US Plains for wheat production, though months of dryness have already left wheat fields with wide cracks and stunted crops. Global corn production will have limited exposure in an El Nino event and increasing rainfalls could support soybean production in South America, BMI Consultancy said.
In China, soybean imports from the US in April more than doubled from a year earlier, as cargoes booked after Beijing resumed purchases late last year gradually arrived at Chinese ports. China is the world’s largest soybean buyer.
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