Commodities for Friday, July 12, 1985 : Forecast Boosts Grain Prices

A forecast for hot, dry weather moving into the heart of the Corn Belt pushed soybean futures prices sharply higher and grain moderately higher Friday on the Chicago Board of Trade.

The National Weather Service revised its six to 10-day forecast from below-normal temperatures to above--and much above--normal readings throughout the Corn Belt.

The predicted heat wave will reach the crops at a critical time and led to a flurry of buying in the soybean and corn pits--and to a lesser extent in the wheat pit--said Robert Lekberg, a grain analyst in Chicago with Shearson Lehman Bros.

“Soybeans were sharply higher on a rewarming of the Midwest and no regionally significant rain over the weekend,” he said, noting that volume was heavy in active trading.

“This catches much of the corn at the critical pollination stage,” Lekberg said. “Hot and dry both on corn is very difficult,” and weather will continue to play a critical role in the coming weeks, he added.

The sagging U.S. dollar, brought down further by a decline in retail sales announced by the government Friday, supported precious metals, which rallied in moderate trading.