CHICAGO: US corn, soyabean and wheat futures all closed higher on Friday and all set multi-month highs during the session as worries about stressful dry conditions in key portions of the Midwest prompted a flurry of buying ahead of a three-day holiday weekend, analysts said.
“We have an issue here in the centre of the Corn Belt (where) we can’t seem to break through and get meaningful moisture,” said Terry Linn, analyst with Linn & Associates in Chicago. “Temperatures are going to be on the rise next week, and so the stress is going to increase on crops that are already struggling with moisture deficits.”
The US Department of Agriculture in May projected record-large US corn and soyabean harvests for 2023, but those targets are in jeopardy due to problematic weather as the summer growing season unfolds. Chicago Board of Trade July corn settled up 17 cents at $6.40-1/4 per bushel, and new-crop December corn, representing the 2023 crop, ended up 23 cents at $5.97-1/2 a bushel after rising to $5.98, its highest since mid-February.
New-crop November soyabeans finished up 50 cents at $13.42-1/4 a bushel after hitting their highest since mid-March. CBOT July wheat settled up 26-1/2 cents at $6.88 a bushel after notching a two-month top at $6.97. US markets will be closed on Monday for the Juneteenth federal holiday, keeping traders on edge as weather forecasts fluctuate.
“With a three-day holiday approaching, the actual rainfall over the weekend and the weather forecast on Monday evening will determine the price direction for the upcoming week,” brokerage Copenhagen Merchant said in a note.
Wheat futures climbed as short-covering by investors, a setback in the dollar this week and dry weather in Europe shifted attention away from harvest progress in the US Plains.
Uncertainty around the Black Sea grain deal allowing export shipments from Ukraine also lent support. Russian officials said on Friday the pact allowing shipments from Ukraine could not be extended under current circumstances when it expires in mid-July.