Key Takeaways
- Chicago corn hits one-week high due to US crop worries.
- Soybeans gain ground as concerns about declining US crop conditions persist.
- US farmers have harvested less than expected corn and soybeans.
Chicago corn prices rose to a one-week high on Wednesday, supported by concerns over declining US crop conditions. The most-active corn contract on the Chicago Board of Trade (CBOT) increased by 0.1% to $5.08-1/4 a bushel, reaching its highest level since September 30.
Soybeans also gained 0.3% to $13.07-1/4 a bushel, bolstered by similar concerns. Wheat prices, however, saw a slight decline of 0.1% to $7.03-1/2 a bushel, following a day of higher trading on Tuesday.
Grain traders are closely monitoring Midwest weather forecasts as farmers accelerate harvesting efforts following rain delays last week. The US Department of Agriculture reported that as of Sunday, 23% of the corn and 25% of the soybeans had been harvested, below the expected pace and the five-year average.
The agency also reduced its estimate of corn crops rated in good-to-excellent condition more than anticipated. For soybeans, recent rains have raised concerns about crop quality and oil content, adding to the market's uncertainty.
Persistent attacks on grain vessels in the Black Sea, including a drone strike that hit two merchant ships, including one carrying grain, have also limited the downside for grain prices. Another vessel was struck on Monday outside Romania’s territorial waters, with Ukraine blaming Russian drones for the attacks.
A powerful El Nino is expected to create a split weather market in South America, potentially brightening crop prospects in Argentina while raising early concerns over dryness in northern Brazil, which could threaten the safrinha corn crop.
The US Department of Agriculture will update its US corn and soybean harvest outlooks in a monthly supply-and-demand report on Friday, providing further clarity on the current situation.
