Corn Futures Climb on Dry Weather Concerns; Soybeans, Wheat Gain
- June 21, 2023
- FMCG HORECA BUSINESS
Concerns over supply led to a rise in Chicago corn futures early on Wednesday in Asia, as significant purchasing was sparked by worry about the dry weather in parts of the U.S. Midwest. Wheat and soybean futures were also expected to rise.
*As of 0153 GMT, corn futures were up 2.5% at $6.12-1/4 a bushel.
* Wheat futures rose 1.6% to $7.06-3//4 a bushel, while the most actively traded soybean contract on the Chicago Board of Trade (CBOT) was up 0.5% at $13.50 a bushel.
* As a growing drought weakened crops in the center of the Midwest agriculture belt, the U.S. Department of Agriculture dropped its corn and soy crop ratings more than anticipated on Tuesday, including sharp declines in top-producing states Iowa and Illinois.
* In light of Russia's threat to withdraw from the agreement next month, United Nations Secretary-General Antonio Guterres urged for an increase in Black Sea grain supplies from Ukrainian ports under a treaty enabling safe wartime exports on Tuesday.
* According to preliminary estimates from European merchants, Algeria's official grain agency, OAIC, purchased milling wheat in an international tender that ended on Monday and is anticipated to be mostly supplied from Russia.
* In a routine tender that will finish on Thursday, the Ministry of Agriculture, Forestry and Fisheries of Japan (MAFF) is looking to purchase 92,529 metric tons of food-grade wheat from the United States, Canada, and Australia.
* According to dealers, commodity funds bought wheat and soybean futures contracts on the Chicago Board of Trade in net amounts on Tuesday. The CBOT maize, soymeal, and soyoil futures were net sellers for the funds.