CHICAGO: US corn and soyabean futures hit their highest in more than a week on Wednesday as forecasts called for dry weather in the Midwest crop belt next week and continued dryness in the northern Plains, threatening crop prospects, analysts said.
As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Trade December corn was up 16-1/4 cents at $5.57 per bushel, after reaching $5.62-3/4, its highest since July 2.
CBOT August soyabeans were up 35-1/2 cents at $14.50-1/4 a bushel, with new-crop November up 27-1/4 cents at $13.79.
“The two-week forecast just doesn’t have the rains for the northern Plains and Canada,” said Dan Cekander, president of DC Analysis. While outlooks called for beneficial showers this week in portions of the Midwest corn belt, some areas may miss out.
July is the main period for corn pollination, a key phase in determining yield, while August is more important for soyabeans.
Concerns persist about drought in the northern Plains and Canada.
Minneapolis Grain Exchange spring wheat futures rose, with the benchmark September contract up 12-1/4 cents at $8.74 a bushel after setting a life-of-contract high at $8.78-1/4.
CBOT soft red winter wheat futures posted even larger gains, with the September contract up 20 cents at $6.53-3/4 a bushel, reflecting fund-driven short-covering. Commodity funds hold a net short position in CBOT wheat, leaving that market prone to bouts of short-covering.
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