Flooding in Eastern Corn Belt Sends Grain Futures Soaring
Grain futures surged overnight amid severe flooding in the eastern Corn Belt that may significantly damage crops. The US dollar index fell to its weakest level in two months as traders scaled back expectations for further Federal Reserve interest-rate increases.
The December corn contract hit a three-week high, up 2.75 cents at 6:00 a.m. CDT. November soybeans were 6.25 cents higher and reached a nearly three-week high. September soybean meal was up $1.10, while September bean oil rose by 60 points and hit a nearly three-week high.
However, winter wheat futures saw modest profit-taking pressure overnight, following recent gains. The US Treasury Department is slated to sell $16 billion of 20-year debt on Wednesday, with the new bonds indicating a yield of around 5.27%.