Wheat and corn rise in Chicago and Paris on Monday, soybeans decline

Global grain and oilseed markets showed mixed dynamics on August 24. Wheat and corn ended the session mostly higher, while soybeans came under pressure. On CBOT, September SRW wheat closed at $250.5/t, while corn gained 1.6% to $193.5/t.

Corn posted the most notable gains, supported by a deterioration in the US crop outlook. The share of corn rated good to excellent fell by 3 percentage points over the week to 47%. Pro Farmer estimates the US corn yield at 173.2 bu/acre, compared with USDA’s forecast of 180.7 bu/acre, with production projected at 15.344 bln bushels.

European markets also strengthened. On MATIF, September wheat rose 1.78% to €227.5/t, while November corn gained 0.76% to €263/t. Corn prices are being supported by weaker EU crop prospects: MARS estimates the average yield at 6.61 t/ha, 7% below the five-year average, while only 29% of the French crop is rated good to excellent.

Strong exports provided additional support to US corn. In the week ending August 20, US corn export inspections reached 1.296 mln tons, while shipments since the start of the marketing year totaled 82.28 mln tons, up 25.5% year-on-year. Meanwhile, US wheat exports since the start of the season stand at 4.34 mln tons, down 26% from a year earlier.

Soybeans moved in the opposite direction. November CBOT futures fell 1.23% to $449.8/t, while September futures declined to $12.16/bushel. Weakness in soybean oil added pressure to the market. Pro Farmer estimates the US soybean yield at 53.3 bu/acre and production at 4.572 bln bushels, while USDA reported that the share of soybeans rated good to excellent declined by 1 percentage point over the week to 60%.

Tags: corn, prices, soybean, wheat, futures, Chicago