US soybeans and corn extend South American weather rally

Chicago soybeans and corn extended their gains on Monday to multi-month highs as unfavorable heat and drought in South America fueled supply concerns, Tendency reports with reference to Reuters.

Wheat rose as well, but dealers said many market participants were still out after the Christmas holidays, meaning relatively small deals could trigger larger-than-usual price movements.

The Chicago Board of Trade’s most active soybeans rose 0.7% to $ 13.51-1 / 4 a bushel at 11:37 a.m. GMT, extending the gains seen before Christmas and reaching their highest level since mid-August.

Corn rose 0.9% to $ 6.11-1 / 4 a bushel, hitting its highest level since late June. Wheat rose 0.2% to $ 8.16-3 / 4 a bushel, also continuing its strength before Christmas.

Soybean and corn crops are expected to be weaker in southern Brazil this season as fields suffer from drought, meteorologists and consultants said.

“The weather forecast for the Brazilian and Argentinian soybean and corn growing regions still looks very dry this week,” said a European trader. “There are fears that a La Nina weather pattern could cause prolonged drought that could stress crops.”

Wheat was supported by expectations of increased demand, with a long-awaited tender from Iraq launched just before Christmas and new bids being considered by other buyers.

“Iraq is looking for a nominal volume of 50,000 tonnes but the country often buys more than the nominal volume sought,” added the trader. “Egypt is expected to issue a new tender for the purchase of wheat, China has a continued need for wheat imports, and Russia has further increased its export taxes, this which is good news for Russia’s competitors in wheat procurement tenders. “

Russia has increased its wheat export taxes for the period from December 29 to January. 11 period, the Ministry of Agriculture announced on Friday. Russia, the world’s largest wheat exporter, introduced taxes on grain exports in June as part of measures to curb domestic food inflation.

About Jefferey G. Cannon

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