Grains-Corn Hits Five-Week High as Rains Threaten U.S. Yields

(Agriculture.com) – U.S. corn futures hit a five-week high on Thursday as forecasts for further adverse weather stoked fears over potential yield losses.

Soybeans edged lower while wheat extended gains into a second session, drawing support from corn. The most active corn futures on the Chicago Board of Trade rose 0.3 percent to $3.69-1/2 a bushel by 1100 GMT, near the session high of $3.69-3/4, the highest since March 29.

Corn gained 1.7 percent in the previous session. Forecasts for further rains across the U.S. Midwest underpinned the gains, analysts said. “The wet weather that has dogged U.S. corn planting is forecast to continue. Weather forecasters are extending unseasonably wet forecasts for some corn regions into mid-May,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “The planting clock is ticking louder by this time because late planting generally reduces yields significantly.” The U.S. Department of Agriculture this week said that 15 percent of the U.S. corn crop had been planted as of April 28, in line with a year ago but well behind the 27 percent average. “If this lasts for two to three, farmers may be tempted to switch part of their corn areas to soybeans,” French consultancy Agritel said in a note.

The most active soybean futures were down 0.2 percent at $8.50 a bushel, having fallen 0.3 percent on Wednesday when prices hit a low of $8.44-1/4, the lowest since Oct. 29. Analysts continue to watch for signs of progress in the U.S.-China trade talks. The two nations held what U.S. Treasury Secretary Steven Mnuchin described as productive trade talks in Beijing on Wednesday and will continue discussions in Washington next week.

The most active wheat futures rose 0.6 percent to $4.38-3/4 a bushel, having closed 1.7 percent up on Wednesday, lifted by short-covering and concerns about delayed spring wheat planting.

Prices at 1100 GMT Last Change Pct End Ytd Move 2018 Pct Move CBOT wheat Dec 438.75 2.75 0.63 503.25 -12.82 CBOT corn Dec 369.50 1.00 0.27 375.00 -1.47 CBOT soy Dec 850.00 -1.75 -0.21 895.00 -5.03 Paris wheat Mar 184.75 1.50 0.82 203.25 -9.10 Paris maize Nov 166.50 1.00 0.60 178.50 -6.72 Paris rape Aug 365.75 -2.75 -0.75 364.50 0.34 WTI crude oil 62.90 -0.70 -1.10 45.41 38.52 Euro/dlr 1.1202 0.00 0.07 1.1469 -2.33 Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne