IKAR in Mass Media

GRAINS-Corn highest in more than 3 weeks on U.S. dryness, wheat and soy firm

09 июня 2021 года

* Corn jumps, nears $7/bushel on U.S. weather worries

* Soybeans and wheat also firm on U.S. weather (Recasts with European trade, adds new comment, changes dateline)

By Michael Hogan

HAMBURG, June 7 (Reuters) - Chicago corn rose more than 2% and hit its highest since mid-May on Monday, supported by dry weather in the U.S. Midwest that threatens to curb world supplies amid strong demand.

Soybeans and wheat rose more than 1%, both also finding support from concern about unfavourable U.S. crop weather.

Chicago Board of Trade most active corn rose 2.4% to $6.99-1/2 a bushel at 1116 GMT, near the session high of $7.06-1/4 a bushel - the highest since May 13.

Soybeans rose 1.5% to $16.07-3/4 a bushel. Wheat rose 1.5% to $6.99-1/2 a bushel.

“Concern about hot dry weather in the U.S. Midwest continues to support corn, wheat and soybeans today,” said Matt Ammermann, StoneX commodity risk manager.

“For corn, weather forecasts for the U.S. Northern Plains/Upper Midwest are still too hot and too dry for the market not to care. The market will be hoping for rains all week, there is zero tolerance for yield losses amid this year’s corn supply and demand balance.”

Global supply estimates for corn are already shrinking amid sustained dry weather in Brazil and strong purchases by China.

Analytics firm IHS Markit last week lowered its estimate of Brazil's 2020/21 corn crop to 88 million tonnes, down five million from its previous estimate.

“Wheat still remains influenced by corn, and some in the market are also expecting the USDA U.S. crop conditions report later today to show a deterioration in U.S. wheat conditions,” Ammermann said.

“The hot and dry weather forecasts in the U.S. Midwest are also feeding the bulls in the soybean market. Tight supply and demand balances for old and new soybean crops cannot afford any weather issues, and so massive risk premium can still be built into current prices.”

New wheat demand was also seen. Algeria's state grains agency, OAIC, has issued an international tender to purchase milling wheat.

Russian consultancy IKAR on Monday raised its forecast for Russia's 2021 wheat crop.

Source: Reuters | #grain | Comments: 0 Views: 10

There are no comments yet. Be the first!

Only authorized users can comment.