CHICAGO, Feb. 16 (Xinhua) — Chicago Board of Trade (CBOT) agricultural futures rose across the board on Tuesday, led by wheat.
The most active corn contract for March delivery rose 13.5 cents, or 2.51 percent, to settle at 5.5225 U.S. dollars per bushel. May wheat soared 20.25 cents, or 3.16 percent, to settle at 6.615 dollars per bushel. March soybean gained 12.75 cents, or 0.93 percent, to close at 13.8475 dollars per bushel.
CBOT agricultural futures went higher on fear of supply loss of U.S. Hard Red Winter (HRW) wheat production and dry/warm weather forecasts for South America, with trade volume reduced as China and South America are on holiday, Chicago-based research company AgResource noted.
Record large Brazilian soybean harvest along with slowing U.S. export demand has capped the CBOT rally.
AgResource maintains that the Russian government will substantially alter or end its proposed floating export tax scheduled to start on June 2 for wheat before its implementation, as the adverse impact on the Russian farmer is severe.
Weekly U.S. Grain Export Inspections were better than expected in corn, but less than hoped for in soybeans and wheat. For the week ending Feb. 12, the United States exported 52.0 million bushels of corn, 29.7 million bushels of soybeans and 14.4 million bushels of wheat.
For respective crop years to date, the United States has shipped 640 million bushels of wheat, down 2 percent; 897 million bushels of corn, up 84 percent; and 1,840 million bushels of soybeans, up 77 percent.
The National Oilseed Processors Association (NOPA) January soybean crush rate jumped to 184.6 million metric tons, a record for January and the second largest on record for any month.
Weather forecast shows that a trend of well below normal rainfall will continue across the southern third of Brazil and the entirety of Argentina.
AgResource holds that record large U.S. crush rates cannot continue, or the United States will simply run out of soybeans amid Brazil’s slow start of harvest. New concern of the market is the drought in Argentina and Southern Brazilian, which will adversely impact corn and soybean yields. Chinese buyers will return early next week.