Chicago soybean and corn prices jumped on Monday, as the market continues to eye the crop-weather in South America. Wheat also rallied as Egypt bought U.S. wheat for the first time since June.
The most active corn contract for March delivery added 7.75 cents, or 1.2 percent, to close at 6.395 U.S. dollars per bushel. March wheat rose 11.25 cents, or 1.8 percent, to 6.4125 dollars per bushel. March soybean jumped 23 cents, or 1.9 percent, to close at 12.52 dollars per bushel.
The strong rally in grain markets has been attributed to weakness in U.S. dollar earlier in the session, as euro jumped against the greenback, amid investor relief after the Greek government early in the morning approved unpopular austerity measures.
Soybean staged a strong comeback on Monday, amid renewed concerns for the southern Brazil crop conditions with dry weather early this week and dry and hot weather for later this week.
“We still have dry conditions affecting crops in South America, in particular at the moment it’s the soybeans that we are worried about”, said Frank Lesh with Future Path Trading.