Forecasts for more rain helped to push soybean futures to strong gains on Wednesday.
The seven-day forecast points to another 3 to 6 inches of rain for most of the eastern Corn Belt, with the bulk of that expected to fall this weekend. With U.S. soybean planting progress 28 points behind normal on Sunday, the rains threaten to even further delay progress. Tuesday’s supply-demand update from the USDA did not make any cuts to projected new-crop soybean yields or production, but the department’s chief economist said he expects adjustments in the July report. July soybeans climbed 18 ¾ cents to $8.78 and November was up 18 ½ cents at $9.05 ½.
Corn futures were modestly higher with support coming from follow-through buying from yesterday’s bullish USDA report and spillover from beans. This morning’s EIA report also showed ethanol production (and corn consumption) in the week of June 7 was the largest since last August. July corn was up 2 ¼ cents to $4.30 and December added 1 ½ cents to $4.48 ½.
Wheat was mixed on the day, with the winter wheat contracts higher and spring wheat lower. Rain for the eastern Corn Belt this weekend is expected to further stress the Soft Red Winter, while more rain in parts of the southern Plains is likely to do the same for the Hard Red Winter crop. On the other hand, the condition rating for the spring wheat crop on the northern Plains is above the year-ago level. July Chicago wheat was up 8 ¼ cents at $5.26 ¼, July Kansas gained 5 ¼ cents to $4.62 ¾ and July Minneapolis was down 4 ¾ cents at $5.64 ¾.
Live cattle and lean hog futures both ended lower today.
Source: DePutter Publishing Ltd.
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