Corn and soybean prices durge on weather risks in the US and Europe

Chicago soybean and corn futures rallied sharply as traders shifted their focus to weather risks that could affect crop development. The most actively traded soybean and corn contracts gained more than 3% on Monday, reaching their highest levels in more than a month. Wheat futures also advanced, along with soybean products, including soybean meal and soybean oil.

The rally pushed both corn and soybean futures above their 100-day moving averages, a closely watched technical indicator that traders use to gauge market sentiment. Breaking above this level is often viewed as a sign of strengthening buying momentum.

Market participants are closely monitoring weather conditions across the main US growing regions. Over the weekend, a powerful heat dome covered much of the country. Although temperatures have eased somewhat since then, the latest forecasts from the National Weather Service indicate that intense heat persists across many eastern states.

The extreme weather has arrived at a critical stage of corn development. Much of the crop is now entering the pollination phase, when high temperatures can significantly reduce yields. Dave Whitcomb, founder of Peak Trading Research, said that July weather is now likely to dictate market direction, as traders remain particularly concerned about corn pollination and soybean yield prospects.

Weather-related concerns in Europe are also supporting prices. According to preliminary estimates by the French government, the recent heat wave may have damaged nearly one-third of the country’s corn crop. As a result, nearby Paris corn futures are trading at a premium to later delivery contracts, indicating expectations of tighter supplies.

The market is also watching developments in US-China trade relations. Last week, Chinese authorities said the two countries had reached a preliminary agreement to include agricultural products in a framework for reciprocal tariff reductions. Chinese soybean crushers typically begin booking significant volumes of new-crop US soybeans in August, meaning any further progress in the negotiations could provide additional support for demand for American soybeans.

Tags: corn, prices, soybean, wheat