Chicago Board of Trade Corn and Soybean Futures Rise on Speculative Buying and Crop Weather Concerns

Speculative buying and concerns over US crop weather conditions drove up prices of Chicago Board of Trade corn and soybean futures on Wednesday, while US wheat futures ended mostly lower due to technical sales and a lack of crop weather worries. Index fund-related buying and weather uncertainty supported corn futures, with Cargill Investor Services leading the buying. Soybean futures rebounded from initial weakness due to speculation fueled by weather and Asian rust concerns.

Key Takeaways:

• Chicago Board of Trade corn futures rose 2.5 cents to $2.24.5 and $2.33.4, respectively, for July and September, while December corn ended up 2.5 cents at $2.41.75 a bushel.
• Soybean futures rebounded from initial weakness, with July soybeans ending 5 cents higher at $6.85.25 a bushel, and November soybeans ending 7.75 cents higher at $6.89.75.
• Speculative buying driven by weather and Asian rust concerns sparked upside momentum in soybean futures.
• Technical selling and a strong dollar pushed US wheat futures lower, with July soft red winter wheat settling down 1.25 cents at $3.31.5 per bushel.
• The dollar's 7.5-month high against the euro made US wheat more costly for foreign buyers.

Statistics:

• Cargill Investor Services purchased 2,000 July and 1,500 December corn contracts, leading the buying.
• July soybeans closed 5 cents higher at $6.85.25 a bushel.
• November soybeans closed 7.75 cents higher at $6.89.75.
• July soymeal settled $0.90 higher at $215.60 a short ton, and July soyoil ended 3.5 cents higher at 23.50 a pound.
• Weekday rains may not be sufficient to offset moisture deficiencies in the eastern Midwest.
• Soybean rust concerns continued to drive speculative buying in soybean futures.

Sources:

• Dow Jones Commodities News via Comtex
• Chicago Board of Trade
• Cargill Investor Services
• Fimat in Chicago
• Dan Cekander, analyst with Fimat in Chicago
• Susan Schwendener, Dow Jones Newswires