Chicago Board of Trade (CBOT) corn and soyabean futures soared on Tuesday with soya leaping more than 2 percent, the most in a month, as excessive wet weather in the United States threatened to trim crop acreage and yields. “We’re adding some risk premium to the market so the bottom line is there is a risk on mentality,” said Don Roose, president of US Commodities in Des Moines, Iowa.
The tight stocks of each also lent support and soyabeans garnered extra strength from another sale of US soyabeans to China, the world’s top soyabean buyer. Wheat turned down as wetter weather in the United States was viewed as favourable to the growing winter wheat crop, thus bearish for futures prices. At 10:14 am CDT (1514 GMT), CBOT July delivery corn was up 11 cents per bushel at $6.88-1/4 per bushel and new-crop December was up 14-1/2 at $5.51.
Soyabeans for July delivery were up 32 at $15.08-1/4 and new-crop November rose 28-1/2 to $12.76-1/4. Corn was led higher by soaring new-crop December futures that climbed more than 2 percent to their highest in almost four weeks, while soyabeans rose to a near two-month peak as heavy rain revived concerns about planting delays in the US Midwest.
CBOT July wheat was down 2-1/4 cents per bushel at $6.95-1/4 a bushel. November milling wheat in Paris was up 1.00 euro per tonne at 205.00 euros per tonne. It had fallen on Monday as the European market focused on the outlook for Black Sea wheat and shrugged off the wet US weather.
A Reuters survey of 11 analysts pegged US corn plantings at 86 percent complete, behind the 95 percent five-year average and soyabean plantings were estimated at 42 percent complete, the slowest pace in 17 years. The rainy conditions have turned attention back to crop risks linked to relatively slow planting so far this year.
Rain over the weekend and this week will drag out late- season plantings of corn and soyabeans in the United States that are already at a historically slow pace, an agricultural meteorologist said on Tuesday. John Dee, a meteorologist for Global Weather Monitoring said from 1.0 to 3.0 inches (2.5 cm to 7.6 cm) or more of rain fell over the weekend in the central Midwest, and 0.5 inch to 1.5 inches is expected at midweek in the northern Midwest.
