Soybeans climbed for a fifth day, the longest rising streak in over two months, on concerns that heat and dryness in August will hurt North American oilseed crops, just as similar weather wilts sunflowers in Europe.
Prices advanced to the highest intraday level in more than two weeks. Corn, also vulnerable to the heat and lack of rain, increased for a fourth day.
“The US and EU weather outlook continues to be the focus,” said Tobin Gorey, agricultural strategist at Commonwealth Bank of Australia. “Both places have significant regions where hot and dry conditions, past and prospective, are on a path to crop stress and perhaps reduce yields.”
Dryness and crop stress will persist in northwestern areas of the US Midwest, and moisture will decline in north central regions, forecaster Maxar said. Warmer temperatures in western areas next week will likely stress both pollinating and filling corn, especially in Iowa and Missouri, it said.
Corn futures climbed to highest in over a week as hot weather in the US and European Union risks cutting yields. Wheat gained 2.1% after declining on Wednesday.
In the EU, yield estimates for corn and sunflower seed have been cut 8% from June because of the hot and dry weather, according to the bloc’s Monitoring Agriculture Resources unit. Add to that the uncertainty over the timing and quantity of grain and sunflower oil shipments from Ukraine in the wake of the export deal, and the global supply outlook remains tight.
The grain community “remains skeptical about the prospects for shipments,” Ukragroconsult analysts said. Still, this week “the first caravan of ships, blocked in Ukrainian ports for 5 months, is being formed,” they said.
