U.S. grain and soybean futures rose Tuesday, boosted by friendly outside markets and ongoing buying by commodity funds.
Soybean prices gained after falling for much of last week, shored up by higher crude-oil prices and a lower U.S. dollar. Prices for crude oil hit fresh highs for 2016 on Monday, and the dollar slid 0.2%, which makes domestic crops such as soybeans more competitive on the global market.
“Funds tend to pick a flavor of the month or year, and soybeans are it right now,” said Jason Britt, president of brokerage Central States Commodities in Kansas City, noting that he had expected fund buying to taper off as spring planting ramped up and investors waited for a threat to the crop from adverse weather to push prices higher. It’s been surprising “that in this timeframe we haven’t seen a little more of a setback,” he said.
Soybean futures for July, the most actively traded contract, climbed 14 3/4 cents, or 1.4%, to $10.79 1/4 a bushel at the Chicago Board of Trade.
Corn prices advanced to a nearly one-month high, lifted by strength in the soybean market as well as moves in energy markets and the U.S. dollar. Analysts said chilly, wet weather in parts of the U.S. Midwest, which is causing planting delays, also boosted prices for the crop, as farmers who have been prevented from planting corn this spring could switch some acres to soybeans instead, potentially trimming corn production this year.
The possibility that adverse weather later in the growing season could dent output of the grain, reducing domestic stockpiles, has helped support the market too.
“Corn can’t get its head off the mat [right now] but carryout could tighten more if we have a production issue,” said Mr. Britt.
CBOT July corn added 2 3/4 cents, or 0.7%, to $3.96 3/4 a bushel, the highest intraday price since April 21.
Wheat prices rose, buoyed in part by continued wet weather in the U.S. Southern Plains, where much of the nation’s winter wheat is grown. Analysts said traders have grown concerned that wet weather as far as 30 days out could dent the quality of crops this year.
CBOT July wheat gained 6 3/4 cents, or 1.4%, to $4.81 1/2 a bushel.
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