On June 2, according to foreign media reports, the Chicago Board of Trade (CBOT) soybean futures market closed higher on Thursday, with the benchmark period closing up about 2.30%, as the dry weather in the Midwest was worrying, the dollar fell, and speculative funds entered the market to do long at the beginning of the month. The U.S. Drought Monitor reported that 66 percent of the Midwest was abnormally dry as of May 30, up from 27 percent the previous week.
In addition, the U.S. Climate Prediction Center’s latest monthly drought outlook released on Wednesday showed the top two U.S. states for corn and soybean production in June — most of Iowa and Illinois, as well as Indiana, Ohio and Pennsylvania. Drought is possible.
One analyst said the market was now focusing on weather and supply rather than demand. If the forecast calls for more rain, the rally will end. The passage of the U.S. debt ceiling bill in the House of Representatives also supported commodity markets such as agricultural products, as well as stock markets.
