Corn near one-week high on US crop worries, soybeans firm
CORN•Chicago corn rose 0.2% to $5.08-3/4 a bushel, near Tuesday’s one-week high, while soybeans gained 0.1% to $13.04 as concerns about US crop conditions supported prices. Wheat added 0.1% to $7.04-3/4.
1. Crop conditions support prices
Corn traded near its highest level since September 30, after the US Department of Agriculture said farmers had harvested 23% of their corn and 25% of their soybeans as of Sunday, below analyst expectations and the five-year average pace. The agency also cut its estimate of corn rated in good-to-excellent condition more than expected.
2. Weather and supply concerns
Traders are watching Midwest weather forecasts as harvesting picks up after rain delays last week; much of the region is expected to remain dry over the next week. Recent rains have raised concerns about soybean crop quality and oil content. The USDA is due to update its corn and soybean harvest outlooks in a monthly supply-and-demand report on Friday.
3. Black Sea and South America
Wheat was little changed after rising Tuesday, with attacks on grain vessels in the Black Sea adding to concerns about supplies disrupted by the Russia-Ukraine war. Meteorologist Kyle Tapley said a powerful El Niño is improving crop prospects in Argentina while raising early concerns about dryness in northern Brazil that could threaten its safrinha corn crop.
