Chicago Close: Condition Decline Spurs Corn Gains

Corn futures ended higher on Tuesday, boosted by an unexpected decline in the condition of the U.S. crop.

Corn rebounded from four-month lows as Monday’s USDA crop progress report pegged the nationwide crop at 55% good to excellent as of Sunday, down 3 points from a week earlier. Heading into the report, most traders and analysts were expecting the condition of the crop to hold steady. The market was further underpinned by the news of another private export sale of 278,200 tonnes of U.S. corn for 2019-20 delivery to Mexico. December and March corn each gained 7 ¼ cents to close at $3.61 ½ and $3.74 ½, respectively.

Soybeans moved higher on a rumour today that China is expected to agree to buy more U.S. agricultural products. As well, a private export sale of 138,000 tonnes of 2019-20 soybeans was reported to Mexico by the USDA this morning. Monday’s crop progress report put the American soybean crop at 55% good to excellent, unchanged from a week earlier and in line with trade ideas. November soybeans jumped 14 ¼ cents to $8.72 and January was 13 ¾ cents higher at $8.85 ¾.

Wheat was boosted by the gains in corn and deteriorating production prospects in Australia due to unrelenting drought in the eastern production regions. December Chicago wheat added 7 ¾ cents to $4.82 ¼, December Kansas City climbed 5 ¾ cents to $4.03 ¾ and December Minneapolis was up 7 cents at $5.03 ¾.

Live cattle and lean hog futures both ended higher today.

Source: DePutter Publishing Ltd.

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