CNS Canada — Soybean and corn futures at the Chicago Board of Trade (CBOT) moved higher during the week ended Wednesday, as rainfall over parts of the U.S. Midwest caused harvest delays.
“The lows were put in at the beginning of October, and we’ve seen a nice rally off of that,” said market analyst Bryan Strommen of Progressive Ag at Fargo, N.D. He said the slow harvest pace was a primary driver for the move higher in the futures.
The U.S. corn harvest was only 33 per cent complete as of Sunday, well below the five-year average of just over half done by this time of year. Meanwhile, the soybean harvest would normally be 66 per cent complete, but was only 53 per cent done in the latest weekly report.
Most of the soybeans and corn that have been harvested are going into farmer bins, rather than to the commercial pipeline, Strommen added.
That lack of farmer selling contributed to nearby firmness in futures, but he cautioned that grain will soon start moving as the harvest moves forward and farmers run out of room.
Warmer and drier conditions are in the forecasts through to the end of October, which should allow the harvest pressure to pick up, he said.
While both corn and soybeans were well off their lows, the record production prospects will make a test of those lows a definite possibility before the harvest is complete, said Strommen.
December corn hit a session low of US$3.1825 on Oct. 1, while November soybeans hit a low of US$9.04 on that day.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.