Grains Higher After Holiday Weekend
Jan 22, 2013
Grain prices shot higher on the open of the overnight session as dry weather concerns continued to persist over the three day weekend. Overnight, nearby soybean futures were up 18 cents a bushel while corn and wheat futures added 5 cents a bushel.
Weather conditions in South America continue to draw the eye of the trade as precipitation in much of Argentina’s grain belt continues to be limited. The forecast for the next week to 10 days calls for limited chances of rain in Argentina. March soybean futures got as high as $14.48 before dipping slightly lower.
In the wheat market, dryness in the US Plains shows no signs of letting up. The latest drought monitor report shows 100% of Oklahoma and Kansas having abnormally dry, while Texas had 91% of the state at that level. With dormancy likely to be broken in the next 2 to 3 months for these key states it seems likely that much of the HRW wheat crop will be in duress around this critical time.
For the corn market, limited export news occurred over the weekend. A Kuwait grain buyer purchased 40,000 tons of South America corn which continues to underpin the lack of competitiveness of US corn in the global marketplace.