Corn futures climb on dry weather concerns; soybeans, wheat gain

SINGAPORE: Chicago corn futures rose on Wednesday as dry conditions in key areas of the US Midwest raised supply concerns and prompted heavy buying.

Soybean and wheat futures were also headed for gains.

Corn futures were up 2.6% at $6.12-3/4 a bushel, as of 0355 GMT.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.2% at $13.45-3/4 a bushel, while wheat futures gained 1.5% to $7.06 a bushel.

The US Department of Agriculture cut its corn and soy crop ratings more than expected on Tuesday, including steep drops in top-producing states Iowa and Illinois, as a deepening drought stressed crops in the heart of the Midwest farm belt.

Selected states showed a decline in good-to-excellent corn of 6%, with the two largest corn producing states of Iowa and Illinois in the worst condition, according to a note from commodities research firm Hightower.

Not surprisingly, poor to very poor crops increased with the biggest jump in Illinois, Hightower said.

The Biden administration plans to increase the amount of biofuels that oil refiners must blend into the nation’s fuel mix over the next three years, but the plan includes lower mandates for corn-based ethanol than it had initially proposed, two sources familiar with the matter told Reuters.

United Nations Secretary-General Antonio Guterres called for an acceleration of Black Sea grain shipments from Ukrainian ports under a deal allowing safe wartime exports, a UN spokesperson said on Tuesday as Russia threatens to quit the pact next month.

CBOT corn may test resistance at $6.44-3/4

Algeria’s state grains agency OAIC bought milling wheat in an international tender closed on Monday, with supplies expected to be sourced largely from Russia, European traders said in initial assessments.

Japan’s Ministry of Agriculture, Forestry and Fisheries is seeking to buy a total of 92,529 metric tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender that will close on Thursday.

Commodity funds were net buyers of CBOT wheat and soybean futures contracts on Tuesday, traders said.

The funds were net sellers of CBOT corn, soymeal and soyoil futures.