Mexico City | Reuters — Chicago soybean and wheat futures closed higher on Monday, boosted by a rally in energy markets and concerns over U.S. crop conditions.
Corn closed lower, however, as weather forecasts showed slightly drier conditions that would be favourable to planting, analysts said.
Oil prices spiked after a surprise announcement by OPEC+ on Sunday to cut more production, pushing up prices of some crops that are also used to make biofuel.
Soybeans stayed higher after the U.S. Department of Agriculture (USDA) on Friday projected 2023 soybean plantings near the low-end of analyst estimates and said soy stocks were down 13 per cent from a year ago.
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“It’s all about energy giving us a push up and then a hangover effect from the crop report,” said Don Roose, president of U.S. Commodities.
The most-active soybean contract on the Chicago Board of Trade (CBOT) settled up 16-1/2 cents at $15.22 per bushel, after hitting a high not seen since March 9 earlier in the session.
Corn settled down 2-3/4 cents at $6.57-3/4 per bushel.
CBOT wheat settled up 1-1/4 cent at $6.93-1/2 per bushel.
Only 28 per cent of the U.S. winter wheat crop was rated in good to excellent condition, a U.S. plant progress report showed.
The forecast for the central U.S. corn belt showed drier conditions over the next two weeks. Corn planting was two per cent complete, in line with last year, the plant progress report showed.
Adding to wheat supply uncertainty, Louis Dreyfus Co. said on Monday it will stop exporting Russian grain from July 1, joining other global merchants in dropping activities in the world’s biggest wheat-exporting country.
Private exporters reported the sale of 150,000 tonnes of corn to Mexico and the sale of 20,000 tonnes of soyoil to unknown destinations for delivery during the 2022-23 marketing year.
— Reporting for Reuters by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore.
