Grains – U.S. Corn Firm As Hot Weather Outlook Adds To Crop Concerns

(Agriculture.com) – Chicago corn rose on Monday, extending gains into a fourth consecutive session, as forecasts for hot, dry weather in the U.S. Midwest added to worries about harvest prospects after a rain-plagued planting season. Wheat edged up, tracking corn. Soybeans also ticked higher, with the Midwest weather risks encouraging the oilseed market to consolidate after a sharp drop on Friday. The most active corn futures on the Chicago Board Of Trade were up 0.6% at $4.44-3/4 a bushel, as of 1239 GMT.

Warmer temperatures last week had been seen by traders as beneficial in helping fields dry out and boost plant development. But latest forecasts showing heat building further in the next two weeks, with limited rainfall, were causing concern that late-planted corn and soybeans may be stressed. “Grain markets rose overnight for a fourth session as forecasts show consistent hot, dry weather throughout major growing areas threatening newly planted crops,” brokerage Allendale said in a note.

Traders are awaiting the U.S. Department of Agriculture’s weekly crop progress report, published later on Monday, for an update on field conditions. The USDA last week rated 56% of the corn crop as good-to-excellent, and just 54% for soybeans. Grain markets are also looking ahead to Thursday’s monthly supply and demand forecasts from the USDA. The USDA wrongfooted the market with its end-June acreage report, in which it pegged corn plantings well above trade expectations and soybeans lower than anticipated.

The most active CBOT soybean futures inched up 0.1% to $8.95 a bushel, having closed down 1.6% on Friday despite brisk weekly export sales. CBOT wheat also ticked up 0.1%, to $5.15-1/2 a bushel. Wheat prices have been capped by an advancing U.S. harvest and decent prospects for European crops, although downward revisions to forecasts of wheat production in top exporter Russia added some caution to the market. Prices at 1239 GMT Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 515.50 0.50 0.10 503.25 2.43 CBOT corn 444.75 2.50 0.57 375.00 18.60 CBOT soy 895.00 0.50 0.06 895.00 0.00 Paris wheat Sep 178.25 0.00 0.00 190.50 -6.43 Paris maize Aug 178.00 -0.25 -0.14 187.25 -4.94 Paris rape Aug 364.00 1.00 0.28 362.25 0.48 WTI crude oil 57.49 -0.02 -0.03 45.41 26.60 Euro/dlr 1.12 0.00 -0.04 1.1469 -2.17 Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne