Corn, wheat and soybean futures all advanced Tuesday, although gains were more restrained compared to the sharp weather- and demand-driven rally seen a day earlier.
Corn drew support from renewed concern about hot weather in the U.S. Midwest and dryness in Europe. Monday’s USDA crop progress report pegged the nationwide corn crop at 67% good to excellent as of Sunday, unchanged on the week. Still, the market remains sensitive to heat during pollination, and strength in crude oil added support. September gained 5 ½ cents to $4.43 ½, and December added 6 ½ cents to $4.64 ¼.
Soybeans also finished higher, though the market lacked the same punch as Monday’s rally. USDA rated the soybean crop 64% good to excellent, down one point from the previous week. Soybeans had been lifted Monday by reports that Chinese buyers purchased at least five cargoes of U.S. soybeans, but Tuesday’s trade was more cautious without full confirmation of larger purchases. August was up 9 ¾ cents at $11.93 ¾, and November was 5 ½ cents higher at $11.97 ¾.
Wheat followed corn and soybeans higher, helped by spillover strength and ongoing worries about hot, dry weather affecting crops in Europe and other producing regions. September Chicago closed 4 ½ cents higher at $6.18 ½, and September Kansas City advanced 3 cents to $6.52 ¾. September Hard Red Spring gained 3 ¾ cents to $6.21, and September Minneapolis was up 3 ½ cents at $6.33.
