Chicago | Reuters – Chicago Board of Trade corn futures set a two-week high on Thursday on concerns about rising temperatures in the U.S. farm belt.
Global weather worries also helped support grain markets, after the U.S. Department of Agriculture trimmed its outlook for world 2024-25 corn and wheat ending stocks in a monthly report on Wednesday.
Traders monitored U.S. forecasts as corn crops approach an important period for development in July. Temperatures will climb above 90 degrees Fahrenheit next week in the southern U.S. Midwest, and much hotter, drier risks persist, Commodity Weather Group said in a forecast.
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U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Corn and soy traders added risk premium to the markets in case the heat sticks around.
“The weather concerns in the U.S. over the next four-six weeks will likely keep the corn market well supported at least into the 4th of July,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage.
Most-active CBOT corn futures Cv1 settled up 4-1/4 cents at $4.58-1/2 per bushel. CBOT soybeans Sv1 rose 12-1/4 cents to $11.89-1/2 a bushel, and wheat Wv1 ended 3 cents higher at $6.20 per bushel.
The USDA, in its monthly report on Wednesday, lowered its forecast of global 2024/25 corn ending stocks to 310.77 million metric tons from 312.27 million in May. The new figure was above an average of analyst estimates for 310.55 million tons.
USDA also cut its estimates for wheat production in Russia, the world’s top supplier of the grain, and in Ukraine, following damaging frosts and dryness.
“Post-USDA, the spot corn contract pushed through technical resistance overnight for a two-week high, while July Chicago wheat looks ready for a breakout one way or the other,” broker StoneX said. “Enough global production concerns remain for both to keep the market on edge for the time being.”
On Thursday, Strategie Grains lowered its monthly forecast the European Union’s soft wheat crop. A prolonged drought is set to hammer corn harvests in Mexico, while searing temperatures and drought hinder summer crop plantings in parts of China, government officials said.
– Additional reporting by Bernadette Christina and Sybille de La Hamaide.
