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Chicago agricultural commodities all rose Tuesday, as talk of Chinese demand and a dry weather forecast boosted corn, wheat and soybeans.
The most active corn contract for July gained 14.25 cents, or 2. 44 percent, to close at 5.9725 dollars per bushel. July rose 10.25 cents, or 1.71 percent, to settle at 6.085 dollars per bushel. July soybeans sharply rose 26 cents, or 1.87 percent, to close at 14.13 dollars per bushel.
Soybeans reversed their two-day losing streak that had cost the market 70 cents total for that time, and sharply rose Tuesday.
The gain in soybeans was driven mainly by ideas that China was looking to buy old crop, although this remained unconfirmed. Soybeans also saw some support from next week's forecast of dry weather. Such weather ideas also extended into the wheat market, where they provided even further support, as wheat-rich Western Kansas was forecasted to experience particularly hot and dry weather.
Also seen as a good development in the wheat market was news that Kansas wheat saw fewer ratings of "good to excellent" quality, now at 52 percent from 60 percent last week. As traders had previously been wary of the particularly large quantities of " excellent" wheat production, this was seen as positive and led to heavy short-covering.
Gains in soybeans and wheat also helped corn, which continued Monday's gains and settled just short of the six dollars a bushel mark. South Korea bought 56,000 tonnes of U.S. corn.
Agricultural commodities were additionally able to rise above outside market negativity, which saw a largely risk-off environment Tuesday.
Traders additionally continue to be wary of high levels of early crop plantings.
For corn, the crop is 87 percent planted, which was markedly higher than expectations, with the five-year average being 28 percent.
Spring wheat plantings similarly were sharply up at 94 percent, compared to the five-year average of 64 percent.
Soybean plantings were also up, though not as drastically as the other crops. Compared to the five-year average of 24 percent, soybean plantings are now at 46 percent. |