Agricultural commodity prices jumped Tuesday in Chicago, led by corn and wheat, amid concerns about the very dry climate in North America.
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“The United States as well as the plains and prairies of Canada, where the majority of spring wheat crops are grown for these two countries, did not receive the precipitation that was forecast and the temperatures are turning very hot”, said Michael Zuzolo of Global Commodity Analytics and Consulting. He points out, for example, that temperatures of over 38 degrees Celsius are expected in North Dakota. In addition, the humidity forecast is very low for the next five days, “We therefore have a market dominated by the climate”, said Michael Zuzolo.
According to the analyst, the rise in the price of oil and the dollar which remains weak against the euro, “Supported” grain prices while buying to hedge against inflation “Began to appear again, potentially from investment funds”.
Awaiting the report from the Ministry of Agriculture
Investors were also awaiting the US Department of Agriculture’s report on the progress of seeds. Analysts are betting on planting rates of 96% for corn, 98% for wheat and 87% for soybeans.
The most traded bushel of wheat (about 27kg) for July delivery closed at $ 6.9350 from $ 6.6350 at the last close, up 4.52%. A bushel of corn (about 25 kg) for delivery in July ended at $ 6.8875 from $ 6.5675 on Friday, up 4.87%. The bushel of soybeans (about 27 kg) for delivery in July closed at $ 15.4850, up 1.17% from $ 15.3050 at the previous close.
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