CNS Canada — Corn and soybean futures at the Chicago Board of Trade are moving in turbulent trade with each U.S. weather forecast.

“It’s all on raindrops right now,” said Scott Capinegro of Barrington Commodity Brokers.

Recent forecasts for rain have pressured corn and soybean markets, though declining crop conditions could provide support moving forward.

Since last week, soybeans lost 21 cents per bushel in the August contract, while corn lost three in the September contract (all figures US$).

“There is definitely damage done to the crops, corn and beans. The market action though, is very iffy,” Capinegro said.

He thinks both markets will go higher “but we may have to wait until we start harvesting.”

Values could also rise as crop tours scout fields, reporting crop ratings and yields.

“You’re definitely going to want to hear from them that there are problems,” Capinegro said.

However, recent data from the U.S. Department of Agriculture has indicated supplies of both commodities are ample, which is keeping a lid on the market.

— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.