Corn, soy rise on US weather worries, macroeconomic optimism
U.S. corn and soybean futures closed higher on Friday, lifted by bargain-buying following this week’s multi-month lows, dryness in the Midwest crop belt and spillover strength from equities and crude oil, traders said.
Wheat followed the firm trend, drawing additional support from weather concerns in China and tensions over a shipping corridor from war-torn Ukraine.
Chicago Board of Trade July corn settled up 16-1/2 cents at $6.09 per bushel, pushing through chart resistance at its 50-day moving average near $6.05. CBOT July soybeans SN3 ended up 23 cents at $13.52-1/2 a bushel and July wheat WN3 finished up 8-1/4 cents at $6.19 a bushel.
For the week, benchmark corn rose 0.8%, soybeans rose 1.1% and wheat Wv1 rose 0.5%.
Mediocre weekly export sales of U.S. corn, soybeans and wheat underscored market worries about poor demand. But futures for all three grains rallied as traders focused instead on U.S. crop weather, with dryness building in portions of the Midwest.
“The weather is becoming an increasing concern, especially in the corn and to a lesser extent the beans,” said Jack Scoville, analyst with the Price Futures Group in Chicago.
An improving macroeconomic outlook lent support. Wall Street equity markets rose on bullish U.S. jobs data and congressional approval of legislation to avert a catastrophic debt default. .N
“Crude oil is up and equities are up, so a bit more of a risk-on vibe, in general. But the dollar index .DXY is firm, so that offsets some of that friendly tone,” said Terry Linn, analyst with Linn & Associates in Chicago.
Bullish April crushing data lent support to soybean futures. The U.S. Department of Agriculture on Thursday said U.S. processors crushed 187 million bushels of soybeans in April, topping a range of analyst estimates.
Traders continued to monitor tensions over a shipping corridor from war-torn Ukraine. Kyiv would be ready to continue exporting grain across the Black Sea as part of a “plan B” without Russian backing if Moscow pulls the plug on the current grain export deal and it collapses, Ukraine’s farm minister said.
Kyiv said on Thursday the U.N.-brokered Black Sea grain export deal had been halted again as Russia had blocked the registration of ships to all Ukrainian ports.
Source: Reuters (Reporting by Julie Ingwersen in Chicago Additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Paul Simao and Matthew Lewis)