Stock market quotations for wheat, soybeans and corn rose by 2-3% on Monday

Global markets saw a sharp speculative rise in wheat, soybean and corn prices on Monday, driven by dry and hot weather in Brazil that could reduce crop potential.

 

In addition, the Mars agency lowered the corn yield forecast in the EU, which contributed to the growth of wheat and corn quotations.

 

December futures rose yesterday:

• by 2.5% to $214.36/t – for soft winter SRW wheat in Chicago,
• by 2.3% to $212.1/t – for hard winter HRW wheat in Kansas City,
• by 1.8% to $227.44/t - for hard spring HRS-wheat in Minneapolis,
• by 2.9% to $162.8/t - for corn in Chicago.

 

November soybean futures in Chicago also rose 2.7% to $381.9/t yesterday.

 

On Euronext, December wheat futures rose 2% to €220.25/t or $244.8/t, and November corn futures rose 2.1% to €206/t or $229/ t.

 

The AgRural agency reports that 26% of the area is sown with first-harvest corn in Brazil, and 0.9% with soybeans (1.9% last year). No rain is expected in the next 10-14 days, but farmers continue sowing, hoping for future rains, which has already led to a speculative increase in quotations.

 

Safras&Mercado raised its forecast for soybean production in Brazil in FY2024/25 from 171.54 to 171.78 million tons (169 million tons according to the USDA forecast) thanks to an increase in planted areas.

 

In the USA, soybeans and corn are harvested on 14% of the area (11% on average over 5 years), and spring wheat - on 95% (94%). 25% of the planned areas were sown with winter wheat, which is 1% higher than the average rate.

 

This season, the USA exported 7.684 million tons of wheat (35.7% higher than last year), corn (as of September 1) – 2.14 million tons (+5.94%), soybeans – 1.232 million tons (-6.1 %).

 

Demand for Ukrainian soybeans, wheat and corn will increase, especially from the EU, given the rise in global quotations.