Corn, Beans Close Higher as Wheat Futures Decline
Corn and soybean futures rose as technical buyers jumped into the markets while wheat closed lower on Monday after Friday’s quarterly grain stockpiles report.
The U.S. Department of Agriculture report showed corn inventories on September 1 totaled 1.74 billion bushels, missing expectations, while wheat stockpiles jumped 21% from the prior year.
Corn and soybean futures got a boost due to a round of buying amid concerns about the wet weather the past several weeks that may have harmed crops. The USDA has projected record output for both crops, but as farmers get into fields they’re finding good, but not great, yields. The wet weather has flooded some fields and left others riddled with fungal diseases.
Stockpiles of wheat in the U.S. on September 1 totaled 2.53 billion bushels, about 726 million bushels of which were stored on farms, a 12% increase. About 1.8 billion were stored off the farm, a 24% increase, the government said. Durum inventories on September 1 totaled 92 million bushels, also a 24% increase, according to the USDA.
Dry weather in much of the Midwest and Southern Plains is helping growers speed planting of winter crops. Some 30% of winter wheat in the U.S. was planted as of last week, on par with the five-year average, government data show. That number may jump in a report due out today due to the recent spate of dry weather.
Corn futures for December delivery rose 9¼¢ to $3.46 a bushel on the Chicago Board of Trade.
Chicago wheat futures dropped 6¾¢ to $3.95¼ a bushel. Kansas City futures lost 9¾¢ to $4.04¾ a bushel.
Soybean futures for November delivery jumped 20½¢ to $9.74½ a bushel in Chicago. Soy meal futures added $9.40 to $309 a short ton, while soy oil futures dropped 0.21¢ to 33.23¢ a pound.