Reuters — Chicago grain and oilseed futures rose on Friday as severe cold in U.S. and other areas of the world raised fears about damage to crops and disruptions to processing plants.
Large corn sales kept the focus on the brisk export pace of that commodity, according to Jim McCormick co-founder of AgMarket.net.
The bitter cold temperatures in the U.S. have also affected markets for beans and corn, said McCormick, as processing plants back off the pace of grinding, causing a spike in futures for byproducts like soymeal.
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The cold forecast has also stirred fears of crop losses in fields lacking snow cover.
Weather conditions in South America also added support to beans, and hope of further Chinese demand underpinned the market.
Dryness in a southern swathe of Argentina is raising concerns about corn and soybean conditions there.
A rally in crude oil, after U.S. President Donald Trump said a U.S. “armada” was heading towards Iran, lent additional background support to grains and soybeans, which are partly used for biofuel.
The most-active March wheat contract on the Chicago Board of Trade was up 14 cents at $5.29-1/2 a bushel.
CBOT March soybeans added 3-3/4 cents to $10.67-3/4 a bushel but held below a three-week high touched on Thursday.
CBOT March corn was up 6-1/2 cents at $4.30-1/2 a bushel.
In wheat, an ongoing bout of severe cold in Russia, the world’s biggest wheat exporter, added to concerns.
Consultancy Sovecon said on Thursday it could cut its forecast for Russia’s crop this year if the cold spell across the country persists for a week or longer.
— Reporting by Renee Hickman. Additional reporting by Daphne Zhang, Peter Hobson and Gus Trompiz
