Corn, soybean, wheat futures rise on US weather concerns

Corn, soybean and wheat futures rose Wednesday over poor weather-induced planting delay in the US, which prevented field operations, according to reports by agrimoney.

The weather conditions specifically supported Chicago corn prices, which closed 0.3 percent up at $3.89 a bushel. Soybean was up 2.50 cents higher at $10.38 a bushel, soya meal $2.70 a bushel rise and wheat futures higher by 2.5 percent to $4.58 a bushel.

Kansas’ wheat prices were up sharply to close at $4.83 a bushel with warmer temperatures but a lack of rain forecast for the HRW growing region in the southwestern plains in the next week.

Soya futures seen as a key product for Chinese retaliation were supported by the prospect of likely tariffs on US goods.

China’s decision to suspended trade concessions with the US on several products including ethanol, analysts say, may impact the corn supply and demand balance.

Analysts raised their estimates of Brazil’s corn crop production, but downgraded Argentina’s. INTL FCStone pegged Brazil’s output at 86.46 million tonnes from 86.2 million tonnes, while Soybean and Corn Advisor left Brazil’s projection unchanged at 86 million tonnes but slashed its Argentine crop figure by one million tonnes to 32 million tonnes, with Informa cutting its estimate by two million tonnes to 31.6 million tonnes.

Soybean and Corn Advisor also cut its estimate of Argentina’s likely soya output by one million tonnes to 40 million tonnes, with Brazil’s soya crop unchanged at 115 million tonnes. Informa reduced its Argentina projection by 5 million tonnes to 39 million tonnes but lifted its Brazil figure by 2 million tonnes to 116 million tonnes.

INTL FCStone puts Brazil’s soybean crop at 115.9 million tonnes.

Some analysts believe the delay to corn plantings in the US could encourage some growers to switch to soya instead.