Chicago Close: Up Sharply Ahead of U.S. Holiday Weekend

After sliding lower a day earlier, Chicago corn, wheat and soybean futures all rebounded sharply higher on Friday.

With U.S. markets closed for the Memorial Day holiday on Monday, traders remained concerned about the slow pace of corn planting across the Midwest, especially as more rain this week is expected to be followed up with more heavy showers in the western Corn Belt next week. Less than half of the nationwide corn crop was planted as of Sunday, versus 80% on average – the slowest pace on record. The front month continuation chart broke $4 for the first time since last May. USDA reported a private export sale of 113,000 tonnes of U.S. corn for 2018-19 delivery to Mexico this morning. July corn jumped 14 ¼ cents to $4.04 ¼ and December was up 11 ¾ cents to $4.19 ¾.

Wheat was higher on the gains in corn and remarks Thursday by U.S. President Donald Trump the current trade battle with China could end quickly. Further support is coming from ideas that excessive wetness and storms in the central U.S. may damage the American winter wheat crop. July Chicago wheat climbed 19 ¼ cents to $4.89 ½, July Kansas City was up 16 ¾ cents to $4.42 and July Minneapolis added 13 ¾ cents to $5.48.

The gains in soybeans were relatively more modest as yesterday’s U.S. government aid package for American farmers did not appear to favour soybeans over any other crop, contrary to expectations. July soybeans were up 8 ¼ cents to $8.29 ¾ and November closed 8 cents higher at $8.56 ¼.

Live cattle futures were mostly lower while lean hogs finished limit down in some contracts.

Source: DePutter Publishing Ltd.

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