CHICAGO: Chicago soyabean and corn futures climbed on Tuesday, underpinned by dry weather in parts of South America that could hurt yields in rival export markets, while wheat rose after a three-session decline.
The most-active soyabean contract on the Chicago Board of Trade (CBOT) rose 31-1/2 cents to $13.87 a bushel by 12:03 a.m. ET (1803 GMT), after reaching $13.87-3/4 a bushel, its highest since July 22, 2021.
Corn rose 18 cents to $6.07-1/4 a bushel and wheat gained 9 cents, at $7.67 a bushel.
Weather forecasts returned to dry and hot in Argentina and southern Brazil, after beneficial rains last week, while early harvest in northern Brazil has been slowed by precipitation.
Timely rains could aid crop production in the region, pressuring US markets lower, said John Zanker, market analyst at Risk Management Commodities.
“If that forecast is broken and they put rains in southern Brazil and Argentina, we could be in for a pretty good slide,” he said.
Brazil’s corn and soyabean crop forecasts were scaled back on Monday by consultancy StoneX, with the country’s soyabean crop lowered to 134.0 million tonnes, from 145.1 million in December and its corn crop dropped to 117.5 million tonnes, from 120.1 million in December.
Traders anticipate a slew of US Department of Agriculture reports due on Jan. 12, including updated US 2021 crop production figures, as well as Dec. 1 quarterly stocks and updated South American crop estimates.
The wheat market was supported by tightening world supplies. Condition ratings for winter wheat fell sharply during December in Kansas and Oklahoma, the top two US winter wheat producers, the US Department of Agriculture (USDA) said on Monday.