April 13, 2012
US corn, soy up; wheat rise on cold weather
Corn and soy prices moved higher as wheat gained due to freezing weather threatening crops in the US, the world's largest shipper of both grains.
Temperatures dropped as low as 26 degrees Fahrenheit (minus 3.3 degrees Celsius) in eastern parts of the Midwest overnight, Telvent DTN said. About 17% of the corn crop in Illinois, the largest US grower after Iowa, had been planted as of April 8, ahead of the previous five-year average of 1%, Department of Agriculture data show.
"Freezing temperatures across the US Midwest may have damaged emerging corn crops, according to US weather forecasters," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), said in a report. "Supporting values were concerns that cold temperatures may have damaged US wheat crops."
July-delivery corn advanced 0.3% to US$6.2875 a bushel on the Chicago Board of Trade, after dropping 4.7% in the previous three days. Wheat futures for July delivery gained 0.6% to US$6.3725 a bushel. The benchmark Chicago wheat contract primarily reflects the soft, red winter-wheat grown in the Midwest.
In Paris, November-delivery milling wheat gained 0.4% to EUR202.50 (US$266.35) a tonne on NYSE Liffe, after dropping 1.5% the previous two days.
Wheat-growing areas in most of Europe had "much needed rain" last week, the Kenilworth, England-based Home-Grown Cereals Authority said in a report. Rains may persist across areas of France, Spain, Germany and the UK in the next five days, according to AccuWeather Inc.
"There are rains in France, and this could push prices lower," Arnaud Saulais, a broker at Starsupply Commodity Brokers, said by phone from Nyon, Switzerland.
Soy for delivery in November gained 0.7% to US$13.68 a bushel in Chicago.