CBOT corn ends higher on US weather worries, surging crude oil

Chicago Board of Trade corn futures closed higher on Monday, and the session high was the highest level in more than a month as forecasts for stressful U.S. crop weather threatened yield prospects, and renewed tensions in the Middle East lifted crude oil futures, brokers said.

• CBOT September corn CU26 settled up 1-1/2 cents at $4.41 per bushel.
• CBOT new-crop December corn CZ26 ended up 2-1/4 cents at $4.63-1/4 a bushel after reaching $4.69-1/2, its highest level since June 2.
• Hot and mostly dry weather was forecast for the western half of the U.S. Corn Belt this week, potentially extending into next week. July is seen as a critical month for corn when much of the crop will pollinate, a key phase for determining yields.
• Additional support stemmed from energy markets as crude oil CLc1 surged more than 8% after U.S. President Donald Trump said the U.S. was reinstating a naval blockade on Iran, reigniting concerns over energy shipments through the Strait of Hormuz. Corn and soybeans sometimes track crude due to their roles as feedstocks for biofuels.
• Ahead of the U.S. Department of Agriculture's weekly crop progress report due later on Monday, analysts surveyed by Reuters on average expected the government to rate 67% of the U.S. corn crop in good to excellent condition, unchanged from the previous week.
• The USDA reported export inspections of U.S. corn in the latest week at 1,539,718 metric tons, toward the high end of trade expectations for 1,100,000 to 1,600,000 tons.