The U.S. Department of Agriculture’s weekly grades for corn, soybeans and spring wheat fell more on Monday than most analysts expected.while the next forecasts call for sweltering heat in the US Midwest and Plains.
“We have a puzzling weather forecast for next week. A little bit of extreme heat moving into the Midwest,” said Brian Basting, commodity research analyst at Advance Trading, adding: “If we start August with that kind of heat , the market establishes some meteorological premium”.
Hot, dry weather during crucial corn pollination and soybean pod development will likely provide further bullish momentum to markets.
The wheat market fell last week, dragging down corn and soybeans, after Russia, Ukraine, the United Nations and Turkey signed a deal on Friday to reopen three Ukrainian Black Sea ports to grain exports, but a Russian attack with missiles to Odessa generated skepticism.
“I think the market is on edge, saying maybe we went overboard and thought everything was going to be fine and grain was going to come out of Ukraine,” said Kristi Van Ahn-Kjeseth, director of operations at consultancy Van Ahn and Company, Inc.
Moscow dismissed concerns that the deal could be derailed, saying it was aimed solely at military infrastructure. Ukraine charged that the attack shows that Moscow cannot be trusted.
Source: Ambito
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