Chicago soybean futures surges on tight supplies, wheat dips, corn ends higher

Chicago soybean futures jumped the most in nearly 4 months Thursday on firm cash market. Corn rebounded from a new 8-week lows as investors worried that the heat and lack of moisture in Midwest Corn Belt in the next few days may delay crop development. Wheat ended a tad lower.

Soybean futures for July delivery surged 22.5 cents, or 2.4 percent to settle at 9.55 U.S. dollars per bushel, the biggest gain for a most-active contract since Feb. 10. July corn eked out a 1 cent gain, or 0.3 percent, to 3.495 dollars a bushel, after touching 3.445 dollars per bushel, the lowest price for a most- active contract since April 7. July wheat dipped 0.75 cents, or 0. 2 percent to 4.4175 dollars a bushel.

Corn received major support on Thursday from the speculation that the hot, dry spell forecast for this month may be a potential threat to the crop yield as well as the short coverings after four consecutive days of losses. "After a lot of selling the past few weeks in corns in this downtrend, some traders are looking for a possible bottom here," said Kevin Cook of PEAK6 Investments in Chicago.

Soybean surged as slowdown in farmer selling tightened current supplies. Traders noted that the spot price of soybean has dropped to 7-week lows, farmers were reluctant to sell their produce due to decline in price. The rebound in crude oil prices also added upward pressure on soybean and corn today.

The continued dollar rally kept a lid on wheat price on Thursday. But the speculation that the hot and dry weather which is expected to push into the central Plains in the next 10 days may bring minor yield losses lifted wheat price.

Source:Xinhua