CHICAGO, June 15 (Xinhua) -- Chicago Board of Trade (CBOT) crop futures closed sharply higher in the trading week ending June 14, boosted by prolonged wet weather and shrinking supplies.
The most active corn contract for July delivery was up 37.25 cents, or 8.96 percent weekly, to close at 4.53 U.S. dollars per bushel. July wheat was up 34 cents, or 6.74 percent, to settle at 5.385 dollars per bushel. July soybeans were up 40.5 cents, or 4.73 percent, to close at 8.9675 dollars per bushel.
Wet weather conditions have been the key factor in pushing up CBOT crop futures, especially those of corn and soybeans.
As of June 9, only 83 percent of U.S. corn was seeded, compared to the 2014-18 average of 99 percent, according to updated data released by the U.S. Department of Agriculture (USDA). Meanwhile, 60 percent soybeans were in the ground, well below the five-year average of 88 percent.
Weather forecasts have indicated more thunderstorms on the way to affect the U.S. Midwest, which may further disrupt the seeding process.
Shrinking supplies also supported the corn prices, which at the end of the trading week reached their highest since June 20 ,2014, above the 4.5-dollar-per-bushel psychological level.
The USDA released Tuesday its monthly report on agricultural supply and demand estimates. U.S. corn production for 2019/20 was forecast to decline 1.4 billion bushels to 13.7 billion, which if realized would be the lowest since 2015/16.
With supplies falling more than use, ending stocks were projected to decline 810 million bushels to 1.7 billion, which if realized would be the lowest since 2013/14, the June report added.
In the same report, the USDA also lowered ending wheat stocks by 69 million bushels to 1,072 million, which gave some support to CBOT wheat prices.
Rainstorms in the Midwest and southern plains may also damage wheat quality, said market watchers.
Although all the most active CBOT corn, wheat and soybean futures posted sharp gains this past week, the momentum of wheat and soybeans seemed to have stalled during the last session on Friday.
Pressure from the prolonged trade frictions between the United States and top soybean buyer China still keeps the rally of the oil seed in check. The recent flooding, and tit-for-tat tariff moves have put U.S. farmers in a difficult position, especially when they have to switch some the corn acres to soybeans in response to wet weather delayed corn planting.
Profit taking will also curb the strong upturn, said market analysts.
