The cooler, wetter weather in the Midwest this past week was supportive to corn and soybean prices, said Jack Scoville of Price Futures Group.
“Producers made a lot of progress when it was hot and dry last week,” he said.
But the change in weather will support prices in the short term.
With the outlook for continued wet, cooler weather in the Midwest throughout the week, Scoville says corn and soybean prices will stay “firm.”
Along with weather, export demand is also supporting prices on the world market. China is buying so many Brazilian soybeans right now, it is clogging ports there. That means the U.S. has an opportunity to get some of the spillover demand from other countries needing soybeans, Scoville said.
Wheat was also up, with Russia showing it is serious about discontinuing the grain corridor with Ukraine. According to Ukraine’s restoration ministry, the Black Sea grain initiative is in danger of being shut down after Russia again blocked inspections of ships under the deal in Turkish waters, Blue Line Futures reports.
At the same time, European countries are trying to keep Ukrainian grain out of their markets and support domestic grains, Scoville said.
That, combined with the dryness continuing in the southwest plains, pushed wheat higher this week.
“Corn is following along with demand,” Scoville said.
Much of that demand is coming from China, he said.
