Chicago | Reuters—Soybean futures climbed on Wednesday on a round of short covering sparked by concerns over hot, dry weather in top producer Brazil that may threaten soybean seeding, traders said.
Corn ticked down slightly as industry players remained reluctant to make big moves in the early stages of the U.S. corn harvest.
Wheat prices were choppy as traders weighed diminished wheat yields in the European Union against a strong flow of Black Sea exports.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1were unchanged at $5.75-3/4 per bushel. CBOT corn Cv1 settled up 1/4 cent to $4.12-3/4 per bushel, and soybeans Sv1 settled up 8 cents to $10.14 per bushel.
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A delayed rainy season in Brazil has led to depleted moisture levels in swathes of the country, including Mato Grosso, one of Brazil’s top soybean-growing states, an analyst note from Maxar said.
However, Brazilian statistics agency Conab still projected on Tuesday the country’s 2024/25 soybean crop at 166.28 million metric tons, up 12.8 per cent from the previous season.
Traders said the lack of rainfall won’t become alarming unless the drought stretches into October, which could seriously delay soybean planting.
In the United States, traders are closely monitoring the rapidly advancing soy and corn harvests, which are expected to produce bumper yields.
“We’re in the wait-and-see mode,” Brian Basting, analyst for Advance Trading, said.
High yield expectations have put heavy pressure on Chicago soy and corn futures, although rains forecasted for this weekend in parts of the U.S. Midwest could hinder harvest in some areas.
Sizeable exports of cheap Black Sea wheat continued to weigh on wheat prices, despite damaging dry weather affecting some Black Sea crops and a lowered forecast for French soft wheat exports.
—Additional reporting for Reuters by Peter Hobson and Sybille de La Hamaide.
