Chicago Close: Higher Still on Cold Weather

Corn, wheat and soybean futures continued to move higher on Wednesday amid cold US weather threats.

Freezes occurred this morning throughout the Midwest, with more widespread freezes expected Thursday morning across the northern two-thirds of the central and eastern US. Along with threatening winter wheat crops, the cold weather is expected to negatively impact the germination of newly seeded corn and soybean crops – potentially already impacting 2021 production levels when big crops are needed to restore US corn and soybean supplies.

Corn futures were further supported by dryness for second crop in Brazil. May corn jumped 19 cents to $6.25 ½ and December gained 8 cents to $5.36 ½.

Soybeans were also underpinned as the USDA’s Ag Attaché reduced their forecast for Argentine soybean output by 2.5 million tonnes to 45 million. In its April supply-demand update, the USDA put its official forecast at 47.5 million. May beans climbed 25 ¼ cents to $14.97 ¼ and November gained 10 ¾ cents to $13.10 ¼.

Wheat picked up some additional support from dry conditions on the US northern Plains and expectations that next Tuesday’s Statistics Canada planting intentions report will show Canadian wheat and durum intentions down from the previous year. May Chicago wheat was 13 ½ cents higher at $6.73 ¼, May Kansas City gained a dime to $6.30 ¾ and May Minneapolis was up 9 ½ cents to $6.78 ½.

Live cattle and lean hogs both closed lower today.

Source: DePutter Publishing Ltd.

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