By Mark Weinraub
CHICAGO, July 13 (Reuters) – U.S. corn futures rose 2.9% on Wednesday, supported by concerns that hot and dry weather in the U.S. Midwest could cut into harvest yields, traders said.
Wheat and soybean futures also were strong, rebounding from sharp declines after the U.S. Agriculture Department’s monthly World Agricultural Supply and Demand Estimates report lowered the global demand outlook for crops.
The gains in corn, which were on track to close higher for the fifth time in six sessions, came as the U.S. crop nears its crucial pollination phase of development.
“Intense heat is building in the Plains, which is expected to periodically pulsate deeper into the Midwest over the next several weeks,” Arlan Suderman, chief commodities economist for broker StoneX, said in a note to clients. “An overall trend of below normal rainfall is also expected across most of the Ag Belt over the next several weeks.”
At 11:10 a.m. CDT (1610 GMT), Chicago Board of Trade December corn futures CZ2, which track the crop being grown in the fields, was up 17 cents at $6.03-1/2 a bushel.
CBOT November soybeans SX2 were up 17-1/2 cents at $13.60-1/2 a bushel and CBOT September wheat WU2 was 18-1/2 cents higher at $8.32-3/4 bushel. Both soybeans and wheat were rebounding from a one-week low hit earlier in the session.
“It is probably a little short-covering after what has been a pretty epic decline in a very quick fashion,” said Greg Grow, director of agribusiness at Archer Financial Services. “You are going to get some dead cat bounces along the way.”
Traders also were monitoring negotiations regarding wheat exports from war-torn Ukraine.
Russian, Ukrainian and Turkish military delegations met with United Nations officials in Istanbul on Wednesday for talks on resuming exports of Ukrainian grain from the major Black Sea port of Odesa as a global food crisis worsens.
(Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Sherry Jacob-Phillips and Richard Chang)
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