Soybean futures surged to the upside on Thursday amid flooding in southern Brazil that is threatening unharvested crops.
The harvest in much of Rio Grande do Sul was already slow due to earlier wet weather in April, but torrential rain has now resulted in severe flooding in many locations. A note today from World Weather said production losses are likely, although several days of dry weather will be needed before the full extent of the damage can be properly assessed. However, additional rain is expected through the weekend. July beans jumped 28 ¾ cents to $11.99, and November added 22 ¾ cents to $11.87 ¾.
Corn was higher on the flooding in southern Brazil, also gaining with the strength in soybeans. Corn planting is reported to be slow in Michigan, Ohio, and Indiana amid overly wet field conditions, but progress is better in the more western Corn Belt states. July corn climbed 9 cents to $4.59 ¾, and December was up 6 ¾ cents at $4.79 ½.
Wheat drew some support from the lack of rain for the winter wheat crop in southwestern Kansas. Much of the rest of the state has seen 1 – 1 ½ inches over the last few days but the southwest remains dry. On the other hand, conditions for the wheat crop in France remain too wet. July Chicago wheat was up a nickel at $6.04 ¼, July Kansas City was 11 ½ cents higher at $6.36 ½, and July Minneapolis gained 7 cents to $7.09 ¼.
