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Tuesday, June 21, 2022

Corn, soybeans firm after hitting multi-week lows; wheat weak

Corn, soybeans firm after hitting multi-week lows; wheat weakCHICAGO: Chicago Board of Trade corn and soybean futures rose on Tuesday, supported by a round of bargain buying after prices for both commodities fell to their lowest levels since late June, traders said.

Wheat remained weak, with the front-month contract on track for its sixth straight lower close on poor export demand for US supplies.

Firm cash markets lent further support to corn and soybeans. Country movement has slowed in recent days as the weakness in the futures market cut into prices being offered to farmers.

Concerns about crop development also supported corn and soybeans despite a US Agriculture Department report on Monday afternoon that showed crop ratings had stabilized in the most recent week. CBOT August soybeans were up 8 cents at $ 10.15-3/4 a bushel at 10:53 a.m.

CBOT September corn was 3-1/4 cents higher at $ 4.08-1/4 a bushel.

“The grains are favoring the high side this morning, with some in the trade looking for a rebound in crop ratings yesterday that did not arrive,” Matt Zeller, director of market information at INTL FCStone, said in a note to clients.

“Those condition numbers remain firmly anchored by continually-declining southern/eastern belt ratings.”

Gains in corn were constrained by the bearish tone hanging over the wheat market. CBOT September soft red winter wheat futures dropped 3/4 cent to $ 5.32 a bushel, with deferred contracts posting bigger losses.

Egypt’s General Authority for Supply Commodities set a tender on Monday to buy an unspecified amount of wheat for shipment Sept. 1-10.

The market expects suppliers in Europe or the Black Sea region to win the tender as they have in the past.

An Australia-based agricultural commodities analyst stressed US wheat was overpriced against global market values. “It has another $ 10 to $ 15 (a tonne) downside here.

The US harvest is also progressing very well,” he said.

Copyright Reuters, 2015

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