Grain Rally Continues Overnight
Jan 16, 2013
Grains moved higher again over night as dryness in South America and the US Plains has traders concerned about crop prospects. Soybeans were up 10 cents, while wheat advanced 5 cents. Corn managed a 3-cent gain in the overnight session.
Weather forecasts call for drier conditions in Argentina which had been plagued by early-season flooding and late-planting. As such, a sudden turn to hot and dry conditions could put the late-planted corn and bean crops at risk. In Brazil, they have seen some improved rainfall as of late, but forecasts point to an early end to the rainy season.
Dry weather is also likely to continue in the U.S. Plains hard red winter wheat region for at least the next week which will further drawdown already disastrous soil moisture reserves.
On the export front, crushers in China were thought to be aggressive buyers of soybeans in the last week buying around 30 cargoes from the U.S. or South America. This compares with a usual weekly average of 10 cargoes to 20 cargoes.