(Reuters) – Chicago soybeans rose for a second session on Wednesday, remaining close to a two-year peak due to concerns over a dry growing-season in the U.S. Midwest and following crop losses in Argentina.
Corn was little changed after climbing for the past two days, while wheat edged higher, recouping some of the losses suffered in the last four sessions of decline.
FUNDAMENTALS
Forecasters said the La Nina weather pattern would result in dry weather across much of the U.S. Midwest, which could reduce corn and soybean production.
Earlier this year, unseasonal rains across Argentina’s soybean belt caused widespread crop damage. Brazil, the world’s second largest corn importer, turned into an importer after lower production due to a drought.
Corn has rallied despite relatively strong crop condition ratings. The U.S. Department of Agriculture late Monday rated 75 percent of the U.S. corn crop as good-to-excellent, unchanged from the previous week and above an average of analysts’ expectations for 74 percent.
Rain is needed in parts of the eastern Midwest and the Mississippi River Delta.
The wheat market has faced pressure from ample world supplies and expectations of bumper harvest of the U.S. winter crop.
The USDA said the U.S. winter wheat harvest was 11 percent complete as of Sunday, up from 2 percent the previous week.
MARKET NEWS
Asian shares dipped to near three-week lows, while safe haven assets such as U.S. bonds and the yen were in demand on Wednesday on growing anxiety Britain will choose to leave the European Union next week.
