Corn and soybean futures climbed to their highest in almost a week as hot, dry weather plagues key growing regions in the Northern Hemisphere.
Stretches of the central US were blanketed in heat advisories or warnings Monday, with the latest government outlook pointing to warmer-than-usual temperatures through the end of the month. Similar conditions are gripping swaths of Europe.
The heat waves threaten crop production, particularly for corn fields that are entering their vital pollination period. French corn conditions have worsened, and the US Department of Agriculture released crop conditions Monday after the close showing soybeans ratings slipping to 61% with corn unchanged at 64%. Spring wheat conditions improved compared to last week.
“Heat will hold over the Plains and Midwest for the next two-plus weeks” said Arlan Suderman, chief commodities economist at StoneX in a note. “The central belt (Iowa and surroundings) are into pollination with an unfavorable pattern and no real change on the horizon.”
Corn closed 1.2% higher at $6.1075 a bushel, while soybeans climbed 2.8% to $13.8025 a bushel. Paris corn futures reached the highest in almost a month.
Wheat in Chicago snapped a five-day decline with a 4.6% gain, as investors assessed a broader rise in commodities and major importer Egypt looked to book wheat this week from suppliers outside Europe.
The North African nation is seeking offers in a tender on Tuesday from the US, Canada, Australia, Argentina and Brazil, its state-run buyer said during the weekend. That marks a break from the norm, as Egypt typically sources wheat from the Black Sea region and European Union.
Grain traders are also watching for the latest efforts to restart exports from Ukrainian ports that have been blocked by Russia’s invasion. The European Union’s foreign policy chief said he was hopeful Russia and Ukraine could clinch a deal this week and alleviate a growing global food crisis.
