U.S. agricultural futures rise

CHICAGO, Aug. 23 (Xinhua) — Chicago Board of Trade (CBOT) agricultural futures rose across the board on Wednesday, led by corn.

The most active corn contract for December delivery surged 11 cents, or 2.29 percent, to close at 4.905 U.S. dollars per bushel. December wheat climbed 12.25 cents, or 1.95 percent, to settle at 6.3975 dollars per bushel. November soybean advanced 14.5 cents, or 1.08 percent, to settle at 13.605 dollars per bushel.

CBOT agricultural markets saw an increase as blistering hot temperatures spread across the Midwest. Participants of the Pro Farmer tour are discovering lower yields and pod counts in Illinois and Iowa compared to last year and the three-year average. However, global trade of wheat and soybean is at a record high, which could significantly boost the potential for U.S. grain and soybean exports in the 2023-2024 period. Expectations are for high market volatility on CBOT to persist until the end of the year.

Brazilian corn and soybean export sales and lineups are substantial. India is struggling with food inflation and is predicted to become a major food importer in the coming months. AgResource, a research company based in Chicago, suggests that long-term lows are forming, cautioning against selling during significant price drops or chasing after substantial rallies.

The U.S. Department of Agriculture announced the sale of 100,000 metric tons of U.S. soymeal for the 2023-2024 crop year to undisclosed destinations. Argentina will cease offering soymeal after October 1.

Last week, U.S. ethanol production reached 308 million gallons, representing a 6 percent increase compared to the previous year.

India will prohibit sugar exports for the first time in seven years, starting on October 1. In the 2022-2023 season, India exported 6.1 million metric tons of sugar, and in 2021-2022, the figure stood at 11.1 million metric tons.

A few light showers are predicted in the Southeast Midwest region within the next 1-5 days, followed by a lack of rain in the 6-10 day forecast. The combination of heat and drought will considerably stress corn and soybean crops. There is no chance of significant rainfall in Central United States over the next two weeks.