Soybeans and corn in Chicago rise on forecasts of dry and hot weather

Source:  GrainTrade

Wet and cool weather in the US this week continued to improve the condition of corn crops, most of which were pollinated in July. Therefore, forecasts of heat at the beginning of August worry traders more than producers. At the same time, farmers are concerned about the lack of moisture in soybean crops during pod formation, which can reduce yield potential.

Soybean contracts on the SWOT exchange in Chicago rose 30-1/2 cents to $14.40-1/2/bushel yesterday, while they rose to $14.46-3/4/bushel in the previous session.

December corn futures in Chicago rose 2.6% to $243.7/t yesterday on forecasts of hot weather, but still remain at a 4-month low.

November soybean futures rose 2.1% to $531.6/t, adding 10% to the price for the week.

Standard Grain president Joe Vaclavik said that “the sideways trend has continued for the past several weeks, which is normal volatility for a market that has fallen 40% in two months.”

Wheat prices are supported by uncertainty with the shipment of the first batch of grain from the Black Sea port of Ukraine, which is planned to be carried out on Friday. Although the UN representative said that important details for the safe passage of ships are still being worked out.

In Ukraine, soybean prices rose due to a 25% increase in the official dollar exchange rate. Processors increased purchase prices from 9-10 thousand UAH/t to 10-11.5 thousand UAH/t with delivery to the plant. Export prices for soybeans in small ports against the background of low demand are $320-350/t SRT.

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