(Bloomberg) – Corn rallied from the biggest loss since June and soybeans climbed amid concerns that the weather may turn dry and hurt crops in the Midwest, the largest U.S. producing region.
Corn for December delivery gained as much as 0.9 percent to $4.685 a bushel on the Chicago Board of Trade and was at $4.675 by 10:25 a.m. in Singapore. Prices dropped 3.9 percent yesterday, the most since June 28, amid wet weather in the Midwest, paring a second weekly gain.
The Standard & Poor’s GSCI Index of eight agricultural commodities slumped 19 percent this year with corn tumbling 33 percent as the U.S. Department of Agriculture predicts a record 13.76 billion-bushel national harvest. While heavier-than-expected rains in the Midwest overnight may help ease dryness concerns, there will be little additional precipitation during the next 7 days or more, DTN said in a report yesterday.
“It’s really just a weather market at the moment,” said Graydon Chong, a grains and oilseed analyst at Rabobank International in Sydney. “When it’s raining in the row-crop areas we’re going to see markets come off and when it turns drier again, we’ll see markets tick up.”
Soybeans for November delivery climbed 0.9 percent to $12.9875 a bushel, set to gain for a third week. Wheat for delivery in December lost 0.3 percent to $6.3875 a bushel, down for a third week.
