Chicago Board of Trade (CBOT) agricultural commodities continued to rise over adverse weathers across the world with wheat prices reaching seven month highs on Tuesday.
The most active corn contract for May delivery rose two cents, or 0.53 percent to settle at 3.7925 dollars per bushel. May wheat delivery went up 4.25 cents, or 0.90 percent to close at 4.77 dollars per bushel. May soybeans were up 3.5 cents, or 0.33 percent to settle at 10.495 dollars per bushel.
CBOT brokers reported that funds bought 4,700 contracts of corn, 3,300 contracts of wheat and 4,700 contracts of soybeans.
Dryness in wheat growing U.S. plains has affected crops there. New crop ratings released by the U.S. Department of Agriculture (USDA) on Monday afternoon referred to big problems in Kansas and Oklahoma particularly.
The latest USDA data confirmed continued damage to winter wheat crops from the dryness, with only 12 percent of Kansas’ crop being rated in “good” or “excellent” condition.
Joe Vaclavik of Standard Grain deemed the ratings “some of the worst in recent memory,” maybe “record lows” in some instances.
Severe cold front in the European continent also triggered worries that wheat crops there may be under threat as well.
Meanwhile, drought in Argentina has not eased, with February rainfalls set to be the lowest in almost four decades. This has pushed CBOT soybean prices to one year highs.
