Chicago corn, wheat and soybeans futures all rose in trading on Wednesday, as the continued hot and dry weather conditions supported the grains.
The most active corn contract for December delivery rose 16 cents, or 2 percent, to close at 8.165 U.S. dollars per bushel. September wheat gained 10.25 cents, or 1.15 percent, to settle at 8.9925 dollars per bushel. November soybeans rose 15.5 cents, or 0. 99 percent, to close at 15.8125 dollars per bushel.
Agricultural commodities reversed their losses from the previous session, and all closed moderately higher on Wednesday, as particular strength in the corn market helped boost trading in other crops.
Corn posted a new high at the close, as traders continued to worry about heavy crop losses due to U.S. drought conditions. Friday’s U.S. Department of Agriculture report will show the latest projected crop yields, and some traders fear the corn crop yield could be as low as 127 bushels an acre.
Soybeans also saw some support from weather concerns, as early August is a crucial period for the crop to set its pods. Insufficient rainfall could push the soybean crop quality down to new lows, and with temperatures as high as 100 degrees Fahrenheit predicted for parts of the U.S. Midwest next week, soybeans broke a two-session losing streak and rose on the session.
Wheat also gained from the recent weather conditions. Traders believe the high corn prices are driving farmers away from using corn as a feeder crop, which will make wheat a substitute. Ideas of this increased demand pushed wheat to close just short of nine dollars a bushel.
Wheat also continued to see support from hot and dry weather conditions in the Black Sea region and Australia, which would boost demand for the U.S. crop.