Soybean and Corn Futures Rise on Brazil Flooding and Argentina Crop Issues

Chicago soybean and corn futures surged this week as severe floods disrupted harvesting in Brazil, the top exporter, while an insect infestation threatened Argentina’s corn crop. Wheat prices climbed initially but underwent a weekly decline due to improved projections in Russia and the U.S. The soybean contract on the Chicago Board of Trade hit its highest level since March, while corn saw its peak since January. Flooding in Brazil’s key soybean and corn state, Rio Grande do Sul, has raised concerns, with estimates suggesting a potential loss of 1 million tons. Similarly, dry weather is impacting central Brazil’s corn crops. In Argentina, a leafcutter insect invasion led to a significant slash in the corn harvest estimate. Despite these challenges, forecasts of rain in North America might balance adverse conditions in South America. The fluctuating prices also reflect losses in soyoil and crude oil values this week, emphasizing the vulnerability of the market. amid such fluctuations, supportive moves by the U.S. dollar have helped bolster U.S. farm goods. Analysts predict ongoing price volatility, urging caution among traders.