Thursday, July 29

Wheat climbs to two-month high, soybeans fall on outside market pressure


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CHICAGO — Chicago wheat futures gained on Monday, climbing to a 2-1/2 month high supported by adverse weather in parts of US, Canadian and Russian growing areas that raises global supply worries.

Soybeans eased after last week’s gains, pressured by broader losses in outside markets, though weather uncertainty underpins the oilseed, while corn traded near even, supported by wheat.

Chicago Board of Trade most-active wheat rose 8-1/4 cents to $7.00-3/4 per bushel as of 11:52 am (1552 GMT), after reaching $7.09-1/2 per bushel, its highest since May 18.

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Corn was even at $5.52 per bushel, while soybeans fell 13 cents to $13.78-3/4 per bushel.

Wheat shook off outside pressure, as forecasts continue to call for hot temperatures and dry conditions in the northern US Plains, where farmers may harvest the smallest spring crop wheat in 33 years.

Expectations of Russia’s 2021 wheat crop have been cut following hot and dry weather in southern Russia, while Ukrainian wheat export prices rose last week on uncertainty over the harvest in the Black Sea region.

Meanwhile, soybeans fell, as beneficial rains over the weekend likely improved the crop, though long-term dryness remains a threat.

“If there’s any prospect for improved weather, it’s going to have the most benefit for soybeans,” said Bill Lapp, ag economist at Advanced Economic Solutions.

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Soybeans also felt pressure as outside markets turned lower on concerns of COVID resurgence, said Joe Davis, director of commodity sales at Futures International.

“Beans are feeling the effect of the broader-based commodity weakness,” he said.

Analysts are watching for changes to the weekly crop conditions report, due Monday afternoon, from the US Department of Agriculture.

Corn struggled for direction, buoyed by firmer wheat that could drive feed costs higher, while feeling pressure from outside markets.

In Brazil, farmers in the center-south region of the country have harvested 30% of their second corn crop through July 15, according to agribusiness consultancy AgRural, down from 43% a year earlier, due to late planting. (Reporting by Christopher Walljasper ; Additional reporting by Michael Hogan in Hamburg; Editing by Lisa Shumaker)

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