The Chicago Grain Futures They extend the rise this Wednesday with the Corn at one-month highswhile the Markets were considering a period of drought in part of USA in the face of considerable global supplies.
In this context, the corn contract of the Chicago Board of Trade (CBOT) climb 1.7% to US$161.12 per tonhighs since June 26. For its part, the CBOT oilseed contract goes up 0.1% to $411.06 and the CBOT wheat scale 23% to US$204.02.
Despite progress, commodity prices are still three crops remain near their lowest level since 2020, after investors anticipating ample supply built up large net short positions in recent weeks.
Cereal prices rise after climate change
A change to warm and dry conditions in a strip of Canada and USAin addition to a Reassessing Donald Trump’s Chances to regain the presidency of the United States after the decision of Joe Biden dropping out of the race, spurred short covering this week.
But despite the hot, dry weather ahead in parts of the U.S. Midwest, conditions for soybeans and corn look pretty good, he said. Dennis Voznesenskyan analyst at Commonwealth Bank in Sydney.
The arid conditions in the corn-producing belts of the Black Sea region were also not going to puncture expectations of a abundant supplyhe said, with South American producers shipping large quantities of corn and soybeans.
“It is difficult to predict a very favourable market in the short term”he claimed.
On Tuesday, on the first day of an annual tour of U.S. crops, scouts projected that the spring wheat in the south and east-central North Dakota will produce the highest yields in tour records dating back to 1994, also tempering concerns about the onset of dry weather.
The Sovecon consultancy slightly raised its forecast for Russia’s 2024 wheat crop, illustrating favorable crop prospects in the world’s largest wheat exporter.
Traders are also seeking a clearer picture of the rain-affected crop in Western Europe, including expectations of a poor harvest in France.
“Therefore, a wait-and-see attitude prevails in the wheat market… as we await further crop data,” Argus analysts said in a note.
Concerns about the Chinese demandwhich weighed on raw material markets in general and competition from cheaper South American and Black Sea suppliers, continued to cool export confidencedespite news of a sale of 200,000 metric tons of U.S. corn on Tuesday.
Source: Ambito
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