U.S. corn and soybean prices rebounded November 21 due to weather even as winter wheat lost only to recover dramatically. This at a time when dry weather across northern Brazil and wet conditions in the south are determining U.S. agricultural futures.

Chicago welcomed a 2% rise in soybean prices on the wings of unequal weather forces in the source country, Brazil. While southern floods have dampened hopes of early soy, scorching drought has dispirited soy farmers in northern Brazil.

Consequently, U.S. soybean futures, especially the January soybean crop notched 27 ¢, to sell at approximately $13.67 per bushel. The same rally also applied to the December soybean meal that closed at $460.2 a ton, a $6.90 rise. 

Corn’s rally from the previous month-to-month dip of 0.5% came from grain withholding by Brazil’s, Argentinian and American corn producers. This non-selling act added a marginal 0.11% (0.5 ¢) to the nearing December corn contract. 

 There is also demand for corn oil to make ethanol by aviation companies, which kills supplies.

Wheat Rebounds

A day earlier on November 20, wheat prices had fallen in Kansas (by 71/2 ¢) and in Minneapolis (by 8 1/4 ¢). Chicago December wheat had also dipped by 7 1/4 ¢, to tail off at $5.43 1/2 a bushel.

The decline happened after the U.S. Department of Agriculture (USDA) failed to rate red winter wheat, leading to trader cynicism.

On November 21, however, reports that the Odessa port strike had incapacitated Ukraine’s cereal exports, rebounded global wheat futures.

U.S. corn futures at Chicago shot by 12.25 ¢ for March wheat contracts, to close the day at $5.83 a bushel. 

Rumours of a possible purchase of a cache of soft red winter wheat by China, is also set to rally prices. 

Soybeans in Demand

The fact that China has negotiated to purchase the only oilseed from the U.S. in recent years has impressed on soy demand. There are even unconfirmed reports of purchases by China’s official grain buyer, Sinograin, in the Pacific Northwest’s soy belt. 

Soy future Bright While Grain Forecasts Bleak

Despite the above good performance of wheat and corn, there are dampening predictions by AgResource. The Ag economy research entity from Chicago expects grain futures to enjoy periodical lows.

However, soyoil and soymeal will remain bullish with high prices through much of the oncoming season.

Soymeal and soyoil are in much demand as both are essential ingredients for the current greening economy of soymeal-based biofuels.