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Dry weather forecasts sparked higher markets on Monday

Agriculture.com Staff 07/03/2006 @ 1:37pm

In general, light trading occurred ahead of the July 4th holiday on the Chicago Board of Trade futures markets. Renewed forecasts with hot, dry conditions underpinned the corn and soybean complexes on Monday.

The Aug. soybean futures contract closed 8 cents higher and 6 3/4 cents higher in the Nov. contract at $6.29 1/2. Corn closed 7 1/2 cents higher in the September and 8 1/4 cents higher in the December at $2.68. The Sept. wheat contract closed 6 cents higher in Chicago at $4.21, 8 3/4 cents higher in Kansas City, and 14 cents higher in Minneapolis.

Don Roose, U.S. Commodities, said the Corn Belt weather is in the same situation it's been in all year, only now corn is entering the critical pollination stage.

"We have heightened concern over dry weather and that is causing a rally," Roose said. "This (weather) ridge that has been in the Southwest moves into the Corn Belt and sticks, you have a situation that is quite inflammatory. The longer the dry pattern stays out there, and then we get through pollination, we march that much closer to a crop."

In general, light trading occurred ahead of the July 4th holiday on the Chicago Board of Trade futures markets. Renewed forecasts with hot, dry conditions underpinned the corn and soybean complexes on Monday.

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