Chicago corn and soybean prices went up on Friday, paring earlier gains, as market concerns kept piling up about South American dryness. Wheat also advanced.
The most active corn contract for March delivery added 4 cents, or 0.7 percent, to close at 5.83 U.S. dollars per bushel. March wheat added 4.5 cents, or 0.8 percent, to 5.8375 dollars per bushel. January soybean rose 18.25 cents, or 1.6 percent, to close at 11.3 dollars per bushel.
A trader said the threatening weather for southern Brazil and Argentina helped lift grain prices, as weather forecast signals below-normal rainfall may continue in South Brazil and Argentina next week.
Rio Grande do Sul, which produces about 14 percent of Brazil’s soybeans and 10 percent of its corn, had six weeks of dry weather, the Brazilian government reportedly said this Monday.
Improvement is expected in some areas over next week, but some dryness is likely to linger, fueling speculation that adverse weather will decrease yield potential in South America, improving demand for U.S. supplies.
As for wheat market, a weaker dollar and less volatility in financial markets offered a boost to wheat price while the solid gain in soybean market and expectation of an oversold technical condition for the wheat market helped spark more buying earlier in the session.