Corn and soybean futures finished modestly higher Monday after recovering from early losses tied to the preliminary U.S.-Iran peace agreement and the resulting drop in crude oil prices. Wheat ended mixed.
The rebound in corn and soybeans was driven mainly by short-covering and bargain buying after corn touched new contract lows, along with some reluctance to maintain bearish positions ahead of the USDA’s weekly crop-condition report.
Traders also returned their attention to North American weather. Although conditions across much of the Corn Belt remain generally favourable, forecasts still carry enough uncertainty around summer heat and rainfall. A weaker U.S. dollar and a broad rally in equity markets provided additional outside support. The gains were limited because easing Middle East tensions sent crude oil sharply lower, weakening the biofuel-related support normally available to corn, soybean oil and soybeans.
July corn gained 2 ¾ cents to $4.15 ½, and December was up 1 ½ cents to $4.41 ¾. July soybeans were 5 ¾ cents higher at $11.19 ¼, and November added 2 ¾ cents to $11.34 ¾.
Some support for winter wheat futures came from short covering, while spring wheat markets were pressured by improving weather in the northern Plains and Western Canada, which is reducing concerns about production. July Chicago wheat was up 5 ¼ cents at $5.89 ¾, and July Kansas City was 5 ½ cents higher at $6.40. July Hard Red Spring eased 2 cents to $6.14 ¾, and July Minneapolis was down 2 ¼ cents at $6.16.
