Corn and soybean futures moved higher on weather concerns Monday, while wheat markets finished mixed.
Corn futures advanced as traders focused on forecasts calling for warm, dry conditions across parts of the U.S. Midwest and northern Plains. The heat is arriving during a critical stage of crop development, raising concerns about pollination. Gains in crude oil also supported corn by improving the outlook for ethanol margins and demand. September added 1 ½ cents to $4.41, and December gained 2 ¼ cents to $4.63 ¼.
Soybean futures followed corn higher, with forecasts for warmer and drier weather creating uncertainty around crop conditions. Although August weather is typically more important for determining soybean yields, traders added weather premium amid expectations that the current pattern could reduce soil moisture ahead of pod-setting and filling. Strength in crude oil provided additional support. August beans were up a nickel at $11.96 ¾, and November was 4 cents higher at $11.94 ¾.
Wheat futures were mixed after earlier concerns over shipping disruptions in the Sea of Azov on the heels of Ukrainian attacks on Russia shipping began to ease. Reports that grain movement might resume or face fewer restrictions reduced some of the geopolitical risk premium that had recently lifted prices. However, uncertainty surrounding Black Sea exports and ongoing military activity limited selling pressure. Weather concerns in Europe and northern Plains also provided underlying support to the wheat market. September Chicago fell 5 cents to $6.35 ¼, and September Kansas City was down a dime at $6.66 ¼. September Hard Red Spring added 3 ½ cents to $6.61, and September Minneapolis inched ¾ of a cent higher to $6.53 ¼.
