Grain futures edge higher on forecasts for unfavorable weather

Grain futures rose on Thursday with soybeans slightly gaining, while wheat and corn posted a moderate advance as rains and lower temperatures across the U.S. and South America growing regions are expected to extend delays in field work.

On the Chicago Board of Trade, soybeans futures for settlement in November rose by 0.21% to $12.7963 per bushel at 12:03 GMT. Prices held in range between days high and low of $12.8338 and $12.7488 per bushel respectively. The oilseed rose by 0.9% yesterday and extended its weekly advance to over 0.9% on Thursday.

Meanwhile, corn futures for delivery in December rose by 0.74% to $4.4588 per bushel at 12:02 GMT. Prices surged to a one-week high of $4.4638 earlier in the session, while days low stood at $4.4138 per bushel. The grain fell by 0.5% on Wednesday and extended its weekly advance to over 2.9% today.

The two contracts drew support on outlook for unfavorable weather conditions in some major growing areas. DTNs forecast on October 16 called for below-normal temperatures and light rain to continue in the Midwest through the next seven days after recent heavy rains in the western parts of the region delayed harvests but helped recharge soil moisture. In Brazil, soybean growing areas in the central parts of the country will see showers in the next days that will recharge soil moisture but impair field work. In Argentina, more rainfall is needed to support corn planting, the agency said, but rains are expected to remain limited in the next seven days.

Corn also rose after Shanghai JC Intelligence Co. wrote in its website today that China bought 20 cargoes of U.S. corn in October due to higher domestic prices.

The U.S. Department of Agriculture said in its latest WASDE report that the U.S. will harvest a record 13.843 billion bushels of corn in 2013, 28% above last-year’s drought damaged crop. The next forecast update was scheduled for October 11 but was delayed due to the lapse of government funding.

Elsewhere on the market, wheat futures for settlement in December rose by 0.81% to $6.8713 per bushel at 12:02 GMT and held in days range between $6.8888 and $6.8075 a bushel. The grain snapped three days of declines after it fell by 0.6% on Wednesday and trimmed its weekly decline to 0.7%.

DTN reported yesterday that there will be further delays in field work in the Northern Plains due to additional precipitation after harvests were delayed in the past seven days. In Argentina, cold weather moving to the countrys southern wheat areas early next week may bring possible damage to heading wheat. Oil World said on October 1 that Argentinas exports may be very small in the 2013-2014 season as 22% of the area sown to wheat, or 900 000 hectares, was in poor condition due to unfavorable weather.

Profarmer Australia, a unit of NZX Ltd. said in a report today quoted by Bloomberg: “Rains have topped up top-soil moisture, but the sentiment is that more rain will be required to see the crop through,” referring to Argentina.

Cool and wet weather in Western Europe is causing delays to field work but a warmer and drier trend is expected to take place next week. In Ukraine, the current dry trend that has improved conditions for the delayed summer crop harvest and planting of winter crops will be replaced by rains during the weekend.