Chicago Close: Corn, Soys Up on Dryness; Spring Wheat Reverses Lower

Corn and soybean futures posted strong gains on Tuesday, while spring wheat declined despite another decline in the weekly US crop condition rating.

Corn was boosted by the weather outlook which shows little rainfall in much of the Corn Belt for the last week of July - during the last half of the pollination stage. Monday’s USDA crop progress report showed the condition of the US crop unchanged from a week earlier at 65% good to excellent, generally in line with trade expectations. Over half of the crop (56%) had reached the silking stage as of Sunday, 4 points ahead of the average. September corn gained 15 ¾ cents to $5.71 ¾ and December climbed 13 ½ cents to $5.65 ¾.

The outlook for drier conditions also boosted the soybean market, with the 8- to 14-day outlook also suggesting above normal temperatures for much of the Midwest, as well as the central Plains. An estimated 60% of the US soybean crop was in good to excellent condition as of Sunday, up a single point on the week. August beans were up 15 ½ cents at $14.43 ½ and November added 15 ¾ cents to $13.88 ½.

Spring wheat futures were initially higher today as the USDA’s crop progress report showed a 5-point drop in the condition of the drought-plagued US spring wheat crop, down to just 11% good to excellent. However, the market eventually reversed and closed in the red. On the other hand, the winter wheat contracts managed to hold onto their advances. September Chicago wheat was up 2 ¾ cents to $.00 ½, September Kansas City was 8 cents higher at $6.60 ¼ but September Minneapolis lost 7 ¾ cents to $9.16.

Source: DePutter Publishing Ltd.

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