Chicago Close: Soybeans, Wheat Sharply Higher

Corn was little changed but soybean and wheat futures roared sharply higher on Monday, with the Chicago wheat market hitting a one-month high.

Heavy demand for bread and pasta as the covid-19 pandemic forces consumers to isolate and eat more at home provided the bulk of the support for the wheat market. Indications of a pick-up in international demand also provided a boost. Turkey today issued an international wheat tender, seeking 200,000 tonnes of wheat for April delivery. Algeria is also tendering for 50,000 tonnes of wheat. May Chicago wheat closed up 23 ¼ cents to $5.62 ½, May Kansas City was up 20 ½ cents to $4.89 ½ and May Minneapolis climbed 9 ¼ cents to $5.30 ¼.

Soybeans were higher on ideas that demand for soymeal from the livestock sector will increase due to less availability of dried distillers grains (DDGs) from the ethanol industry. Weakness in crude oil has tightened ethanol margins and forced some U.S. production plants to close, meaning fewer DDGs for livestock feeding. May beans jumped 21 ½ cents to $8.84 and November was 11 ¾ cents higher at $8.72 ½.

Corn got some support from the gains in wheat and soybeans but the crude oil and ethanol weakness limited the advances. The ethanol industry is currently forecast to consume about 40% of the entire 2019 U.S. corn crop. May corn eased a ¼ cent to $3.43 ½ and December managed a 1-cent gain to $3.64 ¼.

Live cattle and lean hog futures ended sharply higher today with limit gains in some contracts.

Source: DePutter Publishing Ltd.

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