Corn and soybean futures posted strong gains to end the week as traders eyed forecasts for continued dry Midwest weather.
Prices rose ahead of the US Memorial Day weekend as weather outlooks suggest the current bout of dry weather may hang around until early June, potentially threatening the record large production the USDA is projecting for this year for both corn and soybeans. Although most Midwest areas still have enough moisture for summer crop germination and development, some of the driest spots are starting to see drought impacts, including reduced pasture growth and uneven corn and soybean emergence, said today’s daily USDA weather report. July corn gained 13 ¼ cents to $6.04, and December was up 18 ½ cents at $5.34 ½.
In addition to the dry weather, soybeans drew additional support from a weakening US dollar which hit a two-month high this week. July beans were up 13 ¼ cents at $13.37 ¼, and November climbed 17 ¼ cents to $11.89 ½.
Wheat drew strength from the poor condition of the US winter wheat crop on the southern Plains, as well as some developing dryness in parts of Europe. Slow movement of grain out of Ukraine despite the recent renewal of the Black Sea Grain Initiative also underpinned wheat. July Chicago gained 11 ¾ cents to $6.16, July Kansas City was 1 ¼ cents higher at $8.19 ¼, and July Minneapolis added 12 ½ cents to $8.18.
