Wheat & Soybeans Rise on Weather, Corn Gains on Demand
Wheat and soybeans gained as heavy rains halted fieldwork in the U.S. Precipitation in an area from Iowa through Texas last week was six times larger than normal. The excessive rainfalls may delay soybean planting, which was 91 percent finished as of June 13th, while
Corn rose on speculation that demand from overseas importers and domestic ethanol producers will rise. China has purchased 120,000 metric tons from U.S. by June 14th. U.S. ethanol producers may use 4.7 billion bushels of corn in the marketing year starting on September 1st, compared to 4.55 billion in the previous year. December futures for corn delivery added $0.0425 (1.1 percent) at $3.7925 per bushel on CBoT.
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C.I.S., Inc. just released a study on the relationship between the June crop rating on corn and changes in December futures. The study concludes when the good/excellent rating on June 20 is 70% or higher, December futures tend not to exceed the June high during the July-August period. To receive the full study, email info@cis-okc.com.
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