Chicago Board of Trade (CBOT) grains futures closed mixed over the trade week which ended on Friday, as uncertain weather forecasts have double effects on different crop futures. CBOT corn futures fell 25 cents on improved Central U.S. weather, and the elimination of any high pressure ridging for early July.
Rather abruptly, abnormally cool temperatures have been established across the heart of the corn belt, which in the near term will ease concerns about dryness and provide a modest boost in crop ratings across Illinois, Indiana and Missouri. Argentine corn fob basis has sunk to record lows and U.S. export demand will be slowing over the next 10-12 weeks.
However, unlike recent years, there’s not a clear North American climate signal. Record warm ocean temperatures globally are causing fits for the model output, and analysts’ best guess on the reminder of summer is wild swings in weather conditions. Heat and dryness is expected to reveal itself a few more times between now and September. Technically, the market failed at recent highs, and so the long-established range will continue until weather in the second half of July is known. Wheat futures ended mixed, but firm relative to neighbouring corn and soy markets.—Xinhua