CANBERRA: Chicago corn and soybean futures rose on Thursday towards multi-month highs, supported by relief that US President Donald Trump has not unleashed tariffs on agricultural trade, though improving crop weather in Argentina limited gains.
Wheat was unchanged amid weak demand. The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.2% at $4.94-1/4 a bushel, as of 0725 GMT, with CBOT soybeans rising 0.6% to $10.63-3/4 a bushel and wheat flat at $5.72-1/4 a bushel.
In the previous session, corn rose to a 16-month high of $4.98-1/2, soybeans climbed to a 6-1/2-month peak of $10.79-3/4 and wheat to a 3-1/2-month high of $5.84-1/4.
The rallies have been fuelled by a lack of US tariffs or Chinese counter-tariffs on crop shipments, expectations of tightening supply of corn and wheat and dry conditions in Argentina and parts of the Black Sea region.
However, rain on Tuesday and Wednesday brought much-needed relief to crops in Argentina’s central farming region, especially to soybeans, the Rosario grains exchange said.
Showers will also reach dry spots in northern Argentina in mid-February, according to Commodity Weather Group. Argentina is the world’s top exporter of soy oil and meal and the No. 3 exporter of corn. Demand for some crops is also limited, with the US government halting purchases for foreign food aid programmes and China shunning wheat imports.
Hanging over soybeans are expectations of a massive crop in top producer Brazil. Rabobank is the latest consultant predicting a record soybean harvest of 170 million metric tons, 15 million tons more than in 2023/24.
Relatively low soy prices could trigger a major change in US planting, StoneX analyst Matt Zeller wrote in a note.
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