GRAINS-Chicago corn and soybeans rebound from multi-month-lows
Analysts said that Chicago corn and soybeans futures rose from their multi-month lows on Friday, thanks to short covering and the weakening of the dollar.
On Monday, grain market participants also adjusted their positions after focusing on the U.S. Department of Agriculture's acreage reports and stock and crop progress updates.
The price of oil was influenced by the favorable outlook for supply in the United States as well as worldwide.
The most active soybean contract finished 8-1/4 cents more expensive at $10.24-3/4 per bushel.
CBOT Wheat settled 4 cents higher, at $5.40-3/4 a bushel. CBOT corn closed 7-1/2 cents higher, at $4.11-1/4 per bushel. This is a recovery from the eight-month low set on Thursday of $4.02-1/4.
Randy Place, an analyst with Hightower Report said, "There is some short-covering after the big selloff." We've already priced a fair amount of bearishness into this week.
Commodity markets were also supported by the further weakness of the dollar as investors saw a possibility for more interest rate reductions in the United States this year.
Even though grain markets rose on Friday, global supply concerns still hang over the market.
In the Midwest of the United States, rain and warm weather have created perfect conditions for growing soybeans and corn. Meanwhile, in Brazil, farmers expect to harvest an abundant second corn harvest following a record-breaking soybean harvest earlier in this year.
Place stated that "it'll be larger than expected and compete directly with U.S. Exports."
The International Grains Council increased its outlook for world wheat production in 2025-26 by 2 million tonnes to 808 millions on Thursday. Meanwhile, the European Commission raised its forecast of the soft wheat crop for the European Union by 1.6million tons to 128,2 million tons.
According to a Statistics Canada report released on Friday, Canadian farmers planted more wheat, oats soybeans, lentils dry peas, corn and dry peas compared to 2024, but less canola and fewer barley acres.
(source: Reuters)
