Chicago Close: Weather Fuels Wheat Futures Jump

Wheat futures were up sharply on Thursday in the wake of continued concerns about dry weather in key global production areas.

The 6- to10-day outlook calls for the continuation of dry weather across most of the southern Plains, further stressing newly seeded winter wheat crops. Meanwhile, prospects for winter wheat establishment are deteriorating further in Russia, as well as eastern Ukraine, due to dryness. Additionally, Argentina’s Rosario Grains Exchange today lowered its forecast for that country’s 2020-21 wheat crop by 1 million tonnes to 17 million – citing prolonged dry weather. December Chicago wheat jumped 21 ½ cents to $6.18 ¼, December Kansas City gained 22 ¾ cents to $5.58 and December Minneapolis was 12 ¾ cents higher at $5.58 ¾.

Corn futures moved to near 14-month highs on ideas of rising export demand from China. Corn prices in China have reportedly climbed in the wake of widespread storm damage earlier this year that curtailed production and may have opened the door to further imports. The gains in wheat further supported corn. December corn gained 7 ¼ cents to $4.03 ¾ and March was 5 ½ cents higher at $4.08.

Soybeans moved moderately higher amid continued concerns about dry conditions in Brazil where the 2020-21 soybean crop is now being planted. The USDA today also flashed a large export sale of 261,000 tonnes of soybeans to China for 2020-21 delivery. November soybeans were up 6 cents at $10.62 ¼ and January added 4 ¾ cents to $10.62.

Live cattle futures ended lower today. Lean hogs were mixed.

Source: DePutter Publishing Ltd.

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