Soybeans, Grains May Open Higher as Too Much Rain May Hurt Crops
What follows are opening calls for U.S. grain and oilseed markets.
-- Soybean futures may open 12 cents to 15 cents a bushel higher on the Chicago Board of Trade on speculation that too much rain is falling in Brazil, threatening to damage crops and slow harvesting, said Roy Huckabay, an executive vice president for the Linn Group in Chicago. Soybean-oil futures are expected to open 0.6 cent to 0.7 cent a pound higher, and soybean-meal futures may open up $3 to $4 per 2,000 pounds.
-- Corn futures are called to open 3 cents to 5 cents a bushel higher in Chicago on speculation that rains in Brazil will reduce the number of acres farmers are able to plant in the season’s secondary crop, Huckabay said. Wet, cold weather expected in the Midwest over the next month also may delay U.S. planting, he said.
-- Wheat futures may open steady to 2 cents a bushel higher on the CBOT, Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that dry weather during the past four months and drought conditions in the southern Great Plains will reduce yields and the number of acres of U.S. winter wheat harvested this year, Huckabay said.
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