U.S. Agricultural Futures Rise

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Chicago Board of Trade (CBOT) agricultural futures rose across the board on Thursday, led by soybean.

The most active corn contract for December delivery rose 2 cents, or 0.4 percent, to settle at 4.9625 U.S. dollars per bushel. September wheat climbed 2.75 cents, or 0.43 percent, to settle at 6.3775 dollars per bushel. November soybean gained 9.75 cents, or 0.75 percent, to settle at 13.1825 dollars per bushel.

CBOT futures were higher in thin volume as traders adjusted risk ahead of the U.S. Department of Agriculture (USDA) August Crop Report due out Friday.

Due to strong world demand and falling non-U.S. grain production, Chicago-based research company AgResource sees any bearish USDA August Report as providing a buying opportunity, holding this is no place to be making new sales as world grain prices rise amid Chinese and Indian shortages.

Brazil’s CONAB estimated the 2023 soybean crop at 154 million metric tons and corn at 130 million metric tons, both crop estimates are below private industry and USDA forecast. Yield data with the harvest beyond 70 percent points to a final corn crop of 131 to 132 million metric tons.

World feed prices are rising while Chicago and U.S. cash values decline. Brazilian September corn is 20 to 22 cents more per bushel than U.S. corn to world importers. This is the first time since January that U.S. corn is competitive in the world markets which will act to underpin futures.

U.S. export sales for the week ending Aug. 3 were 20.9 million bushels of wheat, 55.2 million bushels of soybeans and 35.9 million bushels of corn. U.S. corn and soybean export demand is seasonally improving.

Weather forecast shows it is slightly wetter across the Midwest through Sunday. Starting Monday, a drier pattern will unfold with warming temperatures.