Chicago | Reuters – Chicago soybeans and corn strengthened on Thursday as worries about the August weather forecast in the central U.S. took centre stage.
Meanwhile, slow demand and cheap Russian exports pressured wheat as a crop tour in North Dakota forecast high spring yields in the United States, according to analysts.
Hot, dry weather expected for the U.S. Midwest supported corn and soybean prices, with up to 20 per cent of the U.S. corn crop stressed in the next two weeks, according to Commodity Weather Group.
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U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 15 cents at $10.79 a bushel by 12:00 p.m. CDT (1500 GMT)
“We are seeing yield prospects deteriorate as August makes or breaks beans,” said Susan Stroud, analyst at NoBullAg.com.
CBOT corn Cv1 inched up 2-3/4 to $4.20-3/4 a bushel and CBOT wheat Wv1 fell 8-1/2 cents to $5.38-1/2 a bushel.
The corn crop is largely made in July, said Stroud. “While we currently have fantastic conditions, just like in beans, things are deteriorating.”
Hot, dry temperatures early in August can make the difference between a “big crop and a really big crop,” she said.
In wheat, data from the U.S. Department of Agriculture showed U.S. wheat export sales for the week ended July 18 at 309,300 metric tons, near the low end of trade expectations. A Reuters poll showed analysts had expected 300,000 to 625,000 tons.
And scouts on an annual field tour projected U.S. spring wheat fields in northwest and north-central North Dakota are expected to produce the highest yields since at least 1994.
In the EU, slow early-season demand as cheaper Russian and Ukrainian supplies rack up sales has some traders worried that the EU is falling behind in exports, even as its surplus is set to be cut by a rain-hit harvest.
– Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
