CHICAGO (Dow Jones)–U.S. wheat futures are expected to start slightly higher Monday as the markets rebound from a sell-off last week.
Futures prices recovered a bit after falling 2.5% last week in a setback from a surge to 28-month highs. Poor global weather, including excessive rains in eastern Australia, sparked the recent rally and continue to support the markets, traders said.
U.S. soybean futures are poised for a modestly higher start to Monday’s day session, as the market rebounds from last week’s decline
in an effort to reduce risk exposure ahead of Wednesday’s government crop report.
Analysts project soybeans to open 4 cents to 6 cents higher on the Chicago Board of Trade. In overnight trading, the January future was up 4 3/4 cents at $13.62 1/2 a bushel, and March soybeans, the most active contract, was up 5
cents at $13.70 a bushel.
The market is gearing up for Wednesday’s crop reports, with traders and analysts anticipating stronger export demand forecasts and smaller ending inventory estimates, according to a St. Louis-based Doane Advisory Service market note.
U.S. Department of Agriculture is scheduled to release its annual crop production, quarterly grain stock and monthly supply and demand forecasts Wednesday at 8:30 a.m. EST.
Meanwhile, concerns mount about Argentina crop conditions as the world’s third largest soy producer behind the U.S. and Brazil continues to experience below normal moisture for optimal crop development.
CORN – Up 3 to 5 cents per bushel.
Concerns about dry weather in Argentina and firm crude oil supportive to corn prices.
* Dry weather combined with above-normal temperatures this week will combine to add stress on Argentina’s crops. Hot and dry weather in Brazil’s Rio Grande do Sul also depleting soil
moisture.