Grain Futures Rise On Dry Weather Forecasts -- Daily Grain Highlights
By Paulo Trevisani
--Corn for July delivery rose 2.8%, to $6.09 a bushel, on the
Chicago Board of Trade on Friday, as forecasts of dry weather
fueled expectations of lower supplies.
--Soybeans for July delivery rose 1.7% to $13.52 2/4 a
--Wheat for July delivery rose 1.4% to $6.19 a bushel.
Weather Bounce: Grain futures erased most of the losses seen
earlier this week. For corn support came mainly from forecasts of
dry weather, RCM's Doug Bergman said in a report. Soybean traders
were "less concerned about dryness causing stress right now while a
much tighter old crop supply situation is supporting cash markets,"
he said. "Heavily sold producers can look at bullish option or
spread positions to re-establish upside exposure."
Unsurprising Exports: The USDA weekly export sales report
broadly met expectations. For the week ended May 25, sales of corn
for the current and the next marketing year totaled 499,000 metric
tons, soybean sales reached 424,000 tons and wheat registered
256,000 tons for the 2022-2023 season. "USDA Export Sales were good
for soybean meal and new-crop wheat," Terry Reilly of Futures
International said in a report. Weather remained a source of
concern for crops. "Majority of the US Midwest will dry down over
the next seven days with temperatures above normal."
Drought Worry: Weather conditions drove investors' concerns
Friday. "The CBOT may chop into the weekend, but if mid-June rain
fails to materialize, a sharp rally unfolds next week as yield
reductions start to be discussed," AgResource analysts said in a
report. They add that the need for rain in the Midwest is
immediate. "The EU model maintains a dry flow for another 10-12
days. ARC's worry for a Midwest drought is rising."
Support for Beans: Soybeans get support from "the fact that
momentum turned higher after yesterday's rally and...the strength
in the financial markets," Summit's Tom Pfitzenmaier said in a
report. He said that "the weather forecast for the next 30 days may
not be quite as impactful for soybeans as it is for corn, but funds
have plenty of fire power and if they turn back to buyers, there is
plenty of upside potential for the soy complex." Pfitzenmaier added
that, "If rain does show up soon, this crop is off to a great
--The USDA will release its weekly grains export inspections
report at 11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The USDA will release its monthly world supply and demand
report at noon ET Friday.
--The CFTC will release its weekly Commitment of Traders report
at 3:30 p.m. ET Friday.
Write to Paulo Trevisani at firstname.lastname@example.org
(END) Dow Jones Newswires
June 02, 2023 15:29 ET (19:29 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.