Grain, Soybeans Futures Gain On Hot, Dry Weather
Jul. 11, 1995
CHICAGO (AP) _ Grain and soybean futures prices advanced Tuesday on the Chicago Board of Trade as investors bet crops will be damaged by extremely hot weather and too little rain.
Traders shrugged off a National Weather Service forecast released Monday that called for only a few days of hot weather this week, followed next week by cool and wet conditions.
``Private meteorologists certainly aren't looking for the amount of rain that the government is,'' said analyst Joel Karlin at Kemper Securities Inc. in Chicago.
Agronomists say the crops, which are entering a sensitive growing stage, will need about 2 inches of rain after temperatures reach into the 90s this week in the Corn Belt.
Wheat futures also gained on ideas the Agriculture Department on Wednesday will show relatively tight wheat stocks and strong demand. The USDA also is expected to release the results of its first all-wheat survey.
Analysts believe the agency will peg total wheat production this growing year at 2.17 billion bushels. That compares with a previous estimate of 2.26 billion bushels and 2.32 billion bushels produced in 1994.
If the estimates hold true, they would emphasize the tight world supplies that have been driving futures prices up to three-year highs.
Corn futures were supported by reports the China was looking to buy 100,000 tons for August shipment.
Wheat futures for July delivery rose 9 3/4 cents to $4.24 a bushel; July corn rose 2 3/4 cents to $2.80 a bushel; July oats rose 3/4 cent to $1.51 3/4 a bushel; July soybeans rose 4 cents to $6.11 1/4 a bushel.
Live cattle futures were lower, while feeder cattle futures were higher on the Chicago Mercantile Exchange. Pork futures prices were mixed.
August live cattle fell 0.35 cent to 63.32 cents a pound; August feeder cattle rose 0.12 cent to 67.42 cents a pound; August live hogs rose 0.38 cent to 45.65 cents a pound; July frozen pork bellies rose 0.47 cent to 37.92 cents a pound.