CHICAGO: Chicago Board of Trade corn futures rose on Wednesday, extending gains in early US trade, while soybeans and wheat set new one-week highs, as hot, dry weather in parts of the United States and Europe kept attention on harvest risks.
Traders also adjusted positions ahead of the US Department of Agriculture’s (USDA) monthly World Agricultural Supply and Demand Estimates report on Friday. The government is expected to trim its outlook for US corn production to 14.392 billion bushels from 14.505 billion bushels, according to a Reuters survey of analysts.
“The weather into the end of August is still a major concern and could trim some of the US’s yield potential,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage. “Given the problems in various areas around the country, the trade is trying to sort just how low the US yield could be.” Most-active CBOT corn was up 8 cents at $6.22 a bushel by 9:50 a.m. CDT (1450 GMT), while soybeans jumped 17-1/2 cents to $14.46-1/4 a bushel. CBOT wheat was 18-1/2 cents higher at $8 a bushel. Soy and wheat touched their highest prices since Aug. 1, while corn matched a high from Tuesday that was the highest this month.
Parts of the Midwest received rain in recent days, but heat in the western side of the farm belt is expected to continue stressing crops. Commodity Weather Group predicted showers in the next week will leave about a quarter of corn and soybeans under stress from dryness.
The USDA said China bought US soy.
In Europe, persisting drought and high temperatures are threatening to deepen yield losses for corn. Romania finished reaping its wheat crop for the year, and the harvest is 15% to 18% smaller than in 2021, Agriculture Minister Petre Daea said.
In other markets, Wall Street’s main indexes rose after data showing a slower-than-expected rise in inflation in July.
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