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U.S. soybean futures surged Monday as Brazil’s scorching heat does not appear to be moderating, creating the danger of damage to newer crops growing there, while enjoying an added boost on news that China bought more U.S. soybeans after making several purchases last week.
Most-active soybeans (S_1:COM) for January delivery settled +2.8% to $13.85 1/2 per bushel on the Chicago Board of Trade, corn for December delivery (C_1:COM) also closed +2.8% to $4.77 1/4 per bushel, and December wheat (W_1:COM) ended +0.7% to $5.79 per bushel.
The rally also helped lift CBOT soymeal futures, with the December contract setting a new high and spending much of the day limit up.
ETFs: (NYSEARCA:SOYB), (NYSEARCA:CORN), (NYSEARCA:WEAT), (DBA), (MOO)
Prices jumped as the latest weather models predict the northern two-thirds of Brazil will be hit with temperatures near 100 degrees Fahrenheit in the coming days, Reuters reported.
A new flash sale of U.S. soybeans to China was confirmed by the U.S. Department of Agriculture, extending last week’s streak of sales into this week ahead of a meeting between President Biden and China’s President Xi in San Francisco on Wednesday.
Also, another 143,637 tons of corn were confirmed for delivery to Mexico in 2023-24.
After the close of trading, the USDA reported 47% of the U.S. winter wheat crop was rated in good-to-excellent condition, down three percentage points from the previous week but still the highest for this time of year since 2019.