November 16, 2009

Rain concerns delay US corn, soy harvest

US corn and soy advanced on concern that higher-than-normal rainfall in parts of the US may raise the risk of yield losses in the world's biggest exporter of both crops.

Above-average rainfall was forecast in producing states, including Iowa, Illinois, Nebraska and Indiana between November 21 and November 25, according to a US Climate Prediction Center report dated November 15. The four states are among the biggest corn and soy growing areas in the US.

Corn for March delivery added as much as 0.9 percent to US$4.0925 a bushel on the Chicago Board of Trade (CBOT), and was at US$4.09.

Soy for January delivery climbed as much as 1.4 percent to US$10.0125 a bushel on CBOT and last traded at US$9.9475.

USDA said that about 37 percent of the corn crop in the 18 largest growing states was harvested as of November 8, compared with an average of 82 percent in the past five years.

USDA reduced this year's US corn production forecast to 12.921 billion bushels on November 10, from an October estimate of 13.018 billion bushels, after heavier-than-normal rainfall and freezing temperatures reduced yield potential.

About 75 percent of the soy crop in the 18 largest producing states had been collected as of November 8, compared with the five-year average of 92 percent, the USDA said November 9.