Chicago | Reuters—Chicago Board of Trade soybean futures closed higher on Tuesday, supported by rising crude oil prices and uncertainty about Midwest crop weather in the weeks ahead, while soyoil prices eased following a sharp two-day rally tied to stronger U.S. biofuel blending mandates.
CBOT wheat hit a one-week high as a slow start to the U.S. winter wheat harvest allowed speculators to cover short positions, analysts said. Corn futures were mostly higher, following wheat and crude oil, but the front July contract CN25 ended lower.
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CBOT July soybeans SN25 settled up 4-1/4 cents at $10.74 per bushel, while July soyoil BON25 was down 0.32 cent at 54.79 cents per pound, retreating from early strength. July wheat WN25 finished up 12-1/2 cents at $5.49 a bushel.
CBOT July corn CN25 settled down 3-1/4 cents at $4.31-1/2 a bushel, but new-crop December corn CZ25 closed up 3-3/4 cents at $4.38-1/4 a bushel.
Strength in energy markets supported corn and soybeans, given the crops’ role in the production of biofuels. U.S. crude oil prices climbed four per cent as the Iran-Israel conflict raged with no end in sight, though major oil and gas infrastructure and flows have so far been spared from substantial impact.
“The Middle East situation is continuing to cause disruptions in the outside markets, which are spilling over into our markets,” said Terry Reilly, senior agricultural strategist for Marex.
Soybean futures drew support after the U.S. Department of Agriculture on Monday rated 66 per cent of the U.S. soy crop as good-to-excellent, down from 68 per cent last week, while corn ratings improved to 72 per cent good-to-excellent, up one percentage point. Summer weather is becoming increasingly important to crop prospects, analysts noted.
“For this time of year, we have taken enough risk premium out, until we get a better look at the weather as we get past the Fourth of July,” said Don Roose, president of Iowa-based U.S. Commodities.
Wheat futures rallied, supported in part by the USDA’s report that the winter wheat harvest was 10% complete, behind the five-year average of 16 per cent.
“With the harvest behind, and too-wet conditions, it’s giving the wheat market a bounce,” Roose said, noting that commodity funds hold a large net short position in CBOT wheat futures, leaving the market prone to short-covering rallies.
In France, the Farm Ministry on Tuesday forecast a strong rebound of the country’s 2025 winter barley and rapeseed production from rain-hit crops last season.
—Additional reporting by Ella Cao and Lewis Jackson in Beijing and Sybille de La Hamaide in Paris.
