CHICAGO: Chicago soybean futures on Monday rose to new eight-month highs, underpinned by concerns over possible reduced supplies from weather-damaged South American harvests. Corn also climbed on South American dryness, while wheat followed higher.
Markets are also positioning ahead of world grain and oilseed supply and demand forecasts from the US Department of Agriculture (USDA) on Wednesday. Chicago Board of Trade most-active March soybeans climbed 28-3/4 cents to $15.83 a bushel by 11:48 a.m. (1748 GMT) after reaching $15.89-1/2, its highest since June 8, 2021.
Corn added 13-1/4 cents to $6.33-3/4 a bushel, while wheat gained 5-1/4 cents to $7.68-1/2 a bushel. “We still have weather concerns about South America, and their forecast doesn’t seem to be getting better for the areas that need to get better,” said Ted Seifried, vice president of Zaner Group.
Weather forecasts show continued dryness across crop-growing regions of Argentina and Brazil for the coming two weeks, reinforcing recent reduced crop estimates by private consultants. This week’s USDA crop supply and demand reports are also expected to show tighter grain and oilseed supplies and smaller crops in Brazil and Argentina.
Argentina’s soybean crop faces a make-or-break period ahead as the risk of drought creeps back, with rainfall “erratic” and heavy rain looking unlikely until the second half of February, the Rosario grains exchange said.