US grain and soyabean futures jumped on Thursday on concerns over persistent rains threatening crop yields, after wet weather already prevented American farmers from planting millions of acres of corn this spring. Forecasts call for more rain in the US Midwest over the next five days, which would keep some fields too wet to plant and add stress to planted crops that are in early growing stages, analysts said.
The weather problems heap more worries on a farm sector that has suffered from years of low crop prices and a US-China trade war that is slowing agricultural exports. "We have a market that's buying the breaks based on the concerns that are created by adverse weather in the US," said Arlan Suderman, chief commodities economist for INTL FCStone.
The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 1.5% at $4.47-3/4 a bushel by 12:16 pm. CDT (1716 GMT). Technical buying helped lift prices after the contract dropped to a one-week low of $4.36-1/2 earlier in the session traders said. The market touched its highest since June 2014 at $4.64-1/4 on Monday, after unrelenting rain led to unprecedented delays in corn planting.
CBOT soyabeans rose 1.4% to $9.15-3/4 a bushel, while CBOT wheat gained 1.1% to $5.27-3/4 a bushel. A sharp fall in the US dollar helped support the grain markets as it makes dollar-priced commodities cheaper overseas. Yet recent gains in corn prices have reduced export demand, traders said. Weekly export sales of US corn totalled 399,200 tonnes, near the low end of market forecasts for 300,000 tonnes to 900,000 tonnes, according to the US Department of Agriculture.
Soyabean export sales came in at 771,600 tonnes for the week, near the high end of expectations for 200,000 tonnes to 800,000 tonnes. Export sales of wheat totalled 187,600 tonnes in the latest reporting week. Analysts' forecasts for weekly wheat export sales had ranged from 200,000 to 500,000 tonnes.
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