U.S. grains face volatile trade amid drought concerns

Sep 27, 2024
By Farms.com

Soybeans, wheat, and corn prices fluctuate

 

The Chicago Board of Trade (CBOT) saw a day of intense price fluctuations for soybean, wheat, and corn futures. Soybean prices reached a new two-month high before closing lower, as traders questioned export demand and the potential impact of late-season drought on U.S. crop yields.

Wheat futures also declined, influenced by lackluster weekly export sales and trader adjustments ahead of key government reports. Meanwhile, corn futures fell despite news of flash sales to Mexico, primarily due to weak weekly export numbers.

Traders are closely watching the U.S. Department of Agriculture's annual small grains summary and quarterly grain stocks reports, which are scheduled for release on Monday.

While Chinese stimulus measures provided initial support to soybean prices, bearish sentiment persisted in the market. Factors such as positioning by speculators and drought conditions in Brazil and Russia also influenced the trading activity.

The drought in Brazil has delayed soybean planting, but rainfall in the coming month could allow fieldwork to begin. In Russia, winter wheat sowing rates have fallen to an 11-year low due to drought in key producing regions.

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