US wheat and corn futures traded higher on Wednesday.
Analysts said that the wheat’s technical bounce a day after the spot July contract neared a two-week low, and worries on dry weather in the Black Sea crop region pushed the futures to rise.
Corn advanced from its two-month low, while soybeans closed mixed as nearby contracts lost ground in previous months.
Chicago Board of Trade (CBOT) for July wheat rose 4.75 cents to $5.10 a bushel. Meanwhile, July corn ended 3 cents higher to $3.83 per bushel, after falling at $3.80, its lowest since March 23.
CBOT July soybeans closed ½ cent down to $10.01, after falling below $10.
DC Analysis President Dan Cekander said in a client note, “Lower-than-expected U.S. corn and winter wheat crop ratings and persistent dryness in South Russia’s wheat area provided good support for CBOT corn and wheat futures.”
The US Department of Agriculture (USDA) rated 37 percent of the US winter wheat crop in good to excellent condition on late Monday, down 38 percent from the previous week.
Meanwhile, the USDA saw the US corn crop at 78 percent good to excellent. It is down 79 percent last week; however, the season’s ratings at still at the highest point for the past 20 years.
The USDA is boosting expectations for soybean’s abundant harvest in the future. The department rated 75 percent of the US soybean crop as good to excellent.
Furthermore, the soybeans have gotten support from China’s statement to import extra $70 billion of American goods over the year, as China is the world’s biggest soy importer.
“The trade dispute is hard to read; that’s why we danced around,” said Don Roose, president of US Commodities.
Wheat Harvest in Full Swing
Meanwhile, wheat harvest in Enid, Oklahoma area is underway, and results are varied across the state so far.
Enid’s Consolidated Grain and Bargo Co. started dumping harvested wheat bushels during the weekend, said Cody Gerlach, the company’s western group origination manager.
According to him, the yields are down compared to the previous years, ranging 12 to 35 bushels per acre. In addition, the test weights are averaging from 56 to 60 pounds.
In order to have the wheat’s best price, the commodity must register at least 60 pounds.
“It’ll be interesting to see how yields go as we move north,” Gerlach said.
He added that the company is starting to roll out of the Enid area up toward the Medford, Renfrew, and Wakita areas.
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