Corn, wheat, and soybean futures surged higher on Monday amid increasing global weather concerns, as traders returned from the U.S. Independence Day holiday weekend in a buying mood.
The rally in corn was driven largely by concerns about heat and dryness in the U.S. at a critical stage for crop development, as corn moves into pollination. Although the core Midwest belt avoided the worst of the weekend heat and is expected to receive some rain, traders were quick to add weather premium back into the market. Additional support came from concerns in Europe, where heatwaves may have damaged a large portion of the French corn crop, as well as from rain risks in Brazil that could disrupt the ongoing corn harvest. September climbed 15 ¼ cents to $4.38 ¼, and December was up 16 ¼ cents at $4.57 ¾.
Soybean futures climbed sharply, supported by the same U.S. weather concerns affecting corn. Traders are closely watching August conditions, which are especially important for soybean yield formation. Speculation about renewed Chinese demand for U.S. soybeans also added support, while strength in soymeal and soyoil helped lift the broader soy complex. August beans jumped 47 ¾ cents to $11.84, and November was 44 ½ cents higher at $11.92 ¼.
Wheat futures also moved higher, supported by the broader strength in grain markets and lingering concerns about tighter U.S. acreage following last week’s USDA report. Weather risks in parts of the United States, Europe and other global growing regions added to the supportive tone. However, wheat’s gains were tempered somewhat by a firmer U.S. dollar and continued expectations for large Black Sea harvests, which kept export competition intense. September Chicago added 14 ¼ cents to $6.14, and September Kansas City ended 11 ¼ cents higher at $6.49 ¾. September Hard Red Spring added 20 cents to $6.17 ¼, and September Minneapolis was 10 ¾ cents higher at $6.29 ½.
