Soybeans, corn rally ahead of USDA report; wheat mixedCHICAGO - Chicago Board of Trade soybean futures surged 2.9 percent on Thursday on concerns that more rain in the U.S. Midwest would hinder crop development, traders said.
By: Mark Weinraub, Reuters
CHICAGO - Chicago Board of Trade soybean futures surged 2.9 percent on Thursday on concerns that more rain in the U.S. Midwest would hinder crop development, traders said.
Corn futures followed soybeans higher.
Expectations that the U.S. Agriculture Department will trim its production forecast for both commodities in its monthly supply and demand report on Friday added support. The USDA also was expected to tighten its estimate of domestic corn and soybean stocks.
"Concerns about lost acres due to heavy rains and tighter old crop carryout have the trade starting to lean bullish for Friday's USDA report," Bryce Knorr, senior editor of Farm Futures Magazine, said in a note.
CBOT August soybean futures settled up 29-1/2 cents at $10.26-1/4 a bushel.
Cash market strength, stemming from slow country movement of soybeans as farmers have been reluctant to sell, also contributed to gains in futures prices.
CBOT September corn was 4-1/4 cents higher at $4.28-3/4 a bushel. The-new crop December contract settled up 4-3/4 cents at $4.39 and hit a one-year high.
"New-crop corn went and took out the December high," said Chris Robinson, senior trader and analyst at Top Third Ag Marketing. "That is significant. We have rallied 81 cents in 17 trading days on weather concerns."
CBOT wheat for September delivery was up 1/2 cent at $5.78 a bushel, with bargain buyers stepping into the market following two straight days of declines.
But K.C. hard red winter wheat futures sagged, with the September contract easing 3-3/4 cents to $5.79-1/4 a bushel.
Abundant global stocks and poor demand for U.S. supplies on the export market kept a bearish tone on the wheat market.
Egypt, the world's top wheat importer, made purchases from Russia and Ukraine on Wednesday, bypassing U.S. offerings that were priced about $50 a tonne FOB higher than the Black Sea wheat.
Seasonal harvest pressure also dampened enthusiasm for wheat futures as combining of the winter wheat crop in the U.S. Plains was more than halfway complete.