SINGAPORE: Chicago soyabeans and corn hit seven-month highs on Monday on expectations drought-stressed South American harvests could shift demand to the United States.
Wheat was pushed higher by the Russia/Ukraine crisis and strong crude oil prices supported grains and oilseeds generally.
Chicago Board of trade most-active soyabeans hit $14.96-3/4 a bushel, the highest since June 2021, and were up 1.1% at 14.86-1/2 at 1158 GMT.
Corn hit $6.42-1/2 a bushel, also the highest since June 2021, and was last up 0.5% at $6.39-1/2. Wheat rose 0.7% to $7.91-3/4 a bushel.
Concerns about reduced South American supplies after dryness hit harvests have underpinned grain and oilseed market sentiment in recent weeks.
“Soyabeans and corn are again being supported today by the continued fear that recent dry weather has damaged South American crops, especially in Brazil and Argentina,” said Matt Ammermann, StoneX commodity risk manager. “With harvesting in South America now starting we are experiencing increased concern that crops could have suffered more from dryness than previously expected.”
“Farmers in Brazil look like being reluctant sellers in this uncertainty. This is again opening up the debate about soyabean export demand being switched from South America to the United States at a time of pretty tight US soyabean supplies.”
Smaller South American soyabean harvests are likely to push major soyabean export business to the United States from June, Hamburg-based oilseeds analysts Oil World said last week.