CHICAGO, July 28 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Wednesday, led by wheat.
The most active corn contract for December delivery rose 2.75 cents, or 0.5 percent, to settle at 5.49 U.S. dollars per bushel. September wheat soared 14.25 cents, or 2.11 percent, to settle at 6.8875 dollars per bushel. November soybean gained 1.5 cents, or 0.11 percent, to settle at 13.61 dollars per bushel.
CBOT agricultural futures rose as both old and new crop cash markets started to show some independent basis strength, the Chicago-based research company AgResource noted.
U.S. Department of Agriculture (USDA) is scheduled to release the crop condition report on Monday. How deep of a fall in U.S. corn and soybean yields will depend on August weather conditions across the Central U.S.
AgResource estimates that China has already booked 12.5 to 13 million metric tons of U.S. corn with 4 to 6 million metric tons of Ukraine corn for 2021-2022. Thus, China's total world corn purchase pace is 16.5 to 19 million metric tons for the 2021-2022 crop year.
The U.S. weekly ethanol grind produced 298 million gallons of ethanol, 4 million gallons less than the prior week. U.S. gasoline consumption was down just 2 percent from 2019 with U.S. ethanol stocks rising to 955 million gallons.
Weather forecast shows another 10 days of arid weather for Iowa, the Dakotas, Minnesota, Nebraska, Kansas, and most of Illinois. Showers will be focused on Wisconsin, Michigan and far Southern Iowa and Northern Missouri. And 60 to 65 percent of the Midwest will be missing the rain with heat returning in the 11-15 day period. Worry for U.S. corn and soybean yields is rising as some areas have not had a meaningful rain in 3 weeks.
As declining soil moisture elevates crop stress across a broad area of the Plains and Western Midwest, Missouri excluded, and Canada's drought is worsening, AgResource has been bullish on the sharp fall in world grain production since June.