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Chicago corn held near a 3-1/2 month high on July 2, 2020, as hot weather and the smaller USDA planting estimate raised doubts about harvest prospects. Soybeans reached a new four-month high, while wheat was little changed as northern Hemisphere harvest progressed.
Traders noted corn demand remained weak due to lower ethanol consumption during the pandemic.
Weather concerns and smaller acreage support corn and soybean prices, but weak ethanol-driven demand limits the upside. Feed buyers face firm grain costs with sensitivity to crop weather.
brecorder.comReutersJul 2, 2020After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 224 past neutral weather events, Wheat (SRW) moved a median -0.1% over 5 sessions (46% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
On July 2 wheat was little changed while corn and soybeans rallied, and Northern Hemisphere harvest progress capped wheat.
