Chicago | Reuters — U.S. corn futures rose for a third straight day on Thursday and hit a 1-1/2 week high on reports of lower-than-expected harvest yields in some areas of the Midwest and forecasts for rain that could delay further field work.
Soybeans also climbed as strong domestic demand offset concerns about trade tensions with China, which has shunned U.S. purchases.
Wheat followed corn and soy higher, lifted by short-covering after abundant global supplies had dragged prices to near five-year lows.
Broader market moves, with gold and silver posting fresh record highs and the U.S. dollar easing, gave grains markets additional support.
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“Outside market pressure is being lifted. At the same time, you’re getting some weather coming in, and in the back of the trade’s mind is why are spreads firming in the corn? Are the yields tightening?” said Mike Zuzolo, president of Global Commodity Analytics.
Chicago Board of Trade December corn CZ25 rose 5 cents to $4.21-3/4 a bushel. Technical buying as the benchmark contract pushed above its 20- and 100-day moving averages accelerated gains.
November soybeans SX25 gained 4-1/4 cents to $10.10-3/4 a bushel, while December wheat WZ25 added 3-3/4 cents to $5.02-1/2 a bushel.
Trading remained cautious as key crop data was unavailable due to a government shutdown and ahead of an expected meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the end of the month, when the two leaders are expected to discuss China’s lack of U.S. soybean purchases.
Tensions have ramped up as China on Thursday accused the U.S. of stoking panic over its rare earth controls, which led Trump to threaten further tariffs on Chinese goods.
Domestic demand supported soybeans, after the National Oilseed Processors Association reported a much-stronger-than-expected September soy crush.
In wheat, top exporter Russia resumed shipments to Indonesia in October, adding to expectations of accelerating Russian shipments following a slow start to the season.
— Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
