Soybean and corn futures extend rally on South America weather issues

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CHICAGO, Dec.22 (Reuters) – Chicago Board of Trade soybean and corn futures on Wednesday extended a rally to new multi-month highs as dry weather in some South American crop belts fueled supply concerns.

Wheat futures rose for a fifth straight session, following corn and soybeans while also benefiting from strong global demand and Ukraine considering limits on exports, analysts said.

Technical buying helped boost markets in pre-holiday trading, traders said.

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The most active soybean contract closed up 22-1 / 4 cents at $ 13.35 a bushel, extending gains for a seventh day and hitting the highest price since August 25.

The most active CBOT corn rose for a second session, ending at 4-1 / 4 cents at $ 6.02-1 / 2 a bushel and breaking the $ 6 level for the first time since July 1.

“The South American weather is cause for concern for the southern part of Brazil and Argentina as the dry weather appears to persist until the end of the year,” CHS Hedging said.

Drought in southern Brazil and developing drought in parts of Argentina have dampened previous optimism about crop prospects in South America. Crop losses in South America could shift export demand to the United States.

“The 15-day weather forecast shows no improvement,” consulting firm Agritel said.

The most active CBOT wheat gained 15 cents at $ 8.14 a bushel and hit its highest price since Dec. 3.

The world’s largest grain producer Ukraine will consider limiting milling wheat exports in the first half of 2022, two sources familiar with the talks told Reuters. Russia, the world’s largest wheat exporter, has sought to cut shipments since the start of this year, leaving major importers to scramble to find alternative supplies. Read more

The US Department of Agriculture will release weekly data on grain and soybean export sales on Thursday.

The purchase on Tuesday of 320,000 tonnes of milling wheat by Turkey’s National Grain Board and the news that the Iranian Government Trading Corporation has issued another tender for the import of wheat underlined the strong international demand, traders said.

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Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Emily Chow in Beijing; Editing by Vinay Dwivedi, David Evans, Ramakrishnan M and Sonya Hepinstall

Our Standards: Thomson Reuters Trust Principles.


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