Grain, Soybean Futures Bounce Higher on Weather

By Benjamin Parkin Features Dow Jones Newswires

Grain and soybean futures rose, extending gains from last week as weather concerns mounted.

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Traders were monitoring the Category 5 Hurricane Irma, which could hit Florida by the weekend and potentially affect crops in the Gulf or the Carolinas. Meanwhile, analysts said dryness in the Midwest could stress crops in states such as Iowa and Illinois, reducing quality as corn and soybeans mature.

A late start to the growing season in some regions also leaves crops vulnerable to early freezes, especially in the northern Plains.

"Given the slower-than-normal development of this year's crops, any adverse event is getting market attention," said Karl Setzer, an analyst at MaxYield Cooperative in West Bend, Iowa.

Other commodities also rose, aiding grain and soybean markets. Tension between the U.S. and North Korea over the long holiday weekend helped push gold prices higher, while crude-oil futures climbed Tuesday.

Grain and soybean futures ended last week higher after falling through much of August. Analysts said that added ongoing technical strength followed into Tuesday's session.

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Soybean prices led gains. Oilseed futures for September delivery rose 2% to $9.60 1/2 a bushel at the Chicago Board of Trade, closing at the highest point since Aug. 9.

CBOT September corn contracts rose 1.3% to $3.44 1/4 a bushel, a two-week high. September wheat futures rose 2.4% to $4.30 1/2 a bushel, the highest in three weeks.

Write to Benjamin Parkin at benjamin.parkin@wsj.com

(END) Dow Jones Newswires

September 05, 2017 15:56 ET (19:56 GMT)