COM - U.S. crop futures surge across the board as drought conditions spread
2023-06-15 18:45:11 ET
Prices for U.S. wheat, soybeans and corn all surged Thursday on the Chicago Board of Trade, as forecasts for continued dry weather in key areas of the Midwest crop belt raised concerns about yield prospects .
The latest weekly data from the U.S. Department of Agriculture estimated 57% of the domestic corn crop and 51% of soybeans are dealing with drought conditions, up 12% from last week for both, as the trouble spreads in the Midwest and Plains.
A three-month seasonal drought outlook by the U.S. Climate Prediction Center forecast drought conditions persisting or developing from eastern Iowa through much of Illinois, Indiana and Ohio through September.
CBOT wheat ( W_1:COM ) for July delivery ended +5% to $6.61 1/2 per bushel, July soybeans ( S_1:COM ) settled +2.9% to $14.28 1/4 per bushel, and July corn ( C_1:COM ) closed +2.6% to $6.23 1/4 per bushel.
ETFs: ( NYSEARCA: WEAT ), ( NYSEARCA: SOYB ), ( NYSEARCA: CORN ), ( DBA ), ( MOO )
A weak export sales report from the U.S. Department of Agriculture also weighed on grain futures; the USDA said 165K metric tons of wheat were sold for the week ended June 8, well below analyst forecasts , while sales of corn and soybeans fell within predictions, at 294.4K tons and 526.9K tons, respectively.
Prices for corn and wheat also are rising in the European Union, which also has been hit by hotter than normal weather as well as uncertain prospects for the Black Sea grain corridor allowing shipments from Ukraine.
More analysis on wheat:
- Wheat Futures Jump As Ukrainde Dam Destruction Amps Up Supply Worries
- WEAT: Upgrading To Buy On El Niño Effects
- WEAT: A Critical Sentiment Barometer Is Very Bullish
For further details see:
U.S. crop futures surge across the board as drought conditions spread