On Thursday, the most actively traded corn futures in Chicago Board of Trade skyrocketed to a six-month peak, while Chicago soybean futures’ prices had surpassed a four-month peak amid growing investors’ concerns about an unprecedented scale of drought alongside an ostensible La Nina threatening South American harvests.
On top of that, weather forecasters were quoted saying over recent past that the Southern part of Brazil, the world’s leading soybean exporter, would unlikely to witness adequate rainfalls, while Argentine farmers would face off an acceleration in present droughts over the region.
Adding further holocaust on soybean and corn harvests this year, a managing director of Teucrium Trading, Jake Hanley was quoted saying that a La Nina weather pattern appeared to have taken hold of most parts of South America, while an exacerbation in dryness would more likely to persist during winter in the United States.
Besides, Hanley wrote in a client note earlier in the session, “The fact that we are in the midst of another La Nina, no matter how strong, is understandably keeping the trade on edge”.
Chicago corn futures hit six-month peak; soybean tops four-month high
Citing statistics, in the day’s Chicago commodity market closure, the most actively traded corn futures gained 3.25 cents to $6.0575 per bushel (25.40 kilograms) after hitting $6.07 per bushel earlier in the session, the strongest level since July 1.
Besides, the most actively traded Chicago soybean futures jumped 5.75 cents to $13.4075 per bushel (27.21 kilograms) after spiking to $13.4250 earlier in the day, marking off the highest level since August 19. Chicago wheat futures, in tandem, added 0.75 cent to $8.1475 per bushel (27.21 kilograms), the strongest since December 3.