Market Overview: U.S. soybean futures surged to their highest levels in two months on Friday, driven by concerns over crop damage in the Gulf Coast region following Hurricane Helene’s landfall, along with short-covering ahead of key USDA reports.
Price Movements:
Soybeans: Chicago Board of Trade November soybeans settled up 24-3/4 cents (2.4%) at $10.65-3/4 per bushel, peaking at $10.69-1/2.
Soymeal: CBOT October soymeal futures jumped 6% as traders adjusted positions ahead of the contract’s first notice day.
Corn: Corn futures rose 4-3/4 cents to $4.18 per bushel.
Wheat: Conversely, wheat futures dropped 4-1/4 cents to $5.80 per bushel, pressured by ongoing export competition from Black Sea suppliers.
Factors Influencing Prices: Storm-related concerns heightened following significant flooding in the Carolinas and infrastructure damage fears along the Gulf Coast. Analysts noted that these factors, combined with end-of-month positioning, contributed to the price surge as shorts exited the market.
Weather Impact: Widespread rains from Hurricane Helene are expected to hinder soybean and corn harvesting in parts of the southern Midwest and northern Delta, although harvest activity is anticipated to be strong in other areas.
Upcoming Reports: Traders are preparing for the USDA’s quarterly stocks and small grains summary reports, with expectations for the largest September 1 stocks of corn, soybeans, and wheat in four years.
Conclusion
The combination of weather concerns, USDA data anticipation, and shifting market positions has fueled a significant uptick in soybean futures, while wheat remains under pressure from international competition.
