CHICAGO: US corn and soyabean futures rose on Tuesday after a government report showed that the condition of crops was worse than expected as a heatwave hit the US Midwest.
“Yesterday’s Crop Progress report provided plenty of fodder for the bulls,” Matt Zeller, director of market information at StoneX, said in a note to clients. “No change yet in hot and dry weather forecasts going forward.”
US wheat futures were mixed, with winter wheat contracts rising on technical buying while spring wheat eased for a second day in a row after some rains in Canada.
At 10:28 a.m. CDT (1528 GMT), Chicago Board of Trade July soyabean futures were up 24-1/4 cents at $15.84-1/2 a bushel and CBOT July corn was 3-1/4 cents higher at $6.82-1/2.
“US weather continues to be the major focus,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “Weather forecasters have the US Midwest’s north west on a path to an expanding area of dryness and crop stress over the next fortnight.”
The US Department of Agriculture (USDA) on Monday afternoon rated 72% of the US corn crop in good-to-excellent condition in its weekly crop progress report, down 4 percentage points from a week ago and below the average of estimates in a Reuters poll.
The USDA rated 67% of the soyabean crop as good-to-excellent in its first 2021 condition ratings for the oilseed, below the average analyst expectations of 70%.
CBOT July soft red winter wheat was up 4-3/4 cents at $6.84-3/4. The contract found support at its 50-day moving average.
But MGEX spring wheat for July deliver was 10 cents lower at $7.75 on follow-through selling after sinking 3.4% on Monday.