Bloomberg News

Corn, Soybeans Rise as High Temperatures May Damage U.S. Crops

June 21, 2011

June 21 (Bloomberg) -- Corn advanced the most since June 8 and soybeans had their biggest gain in more than two weeks on speculation that hot U.S. weather will move into the main growing regions next week, limiting crop prospects.

Temperatures as much as 12 degrees Fahrenheit above normal in the southern Great Plains may move into parts of the Midwest beginning June 30, said Dave Tolleris, the president of WXRisk.com in Richmond, Virginia. The hot, dry weather will approach the Canadian border and may cause stress for crops that had too much rain in the past month, Tolleris said.

“The markets fear a possible shift in the weather pattern that may damage crops,” said Gregg Hunt, a broker at Archer Financial Services Inc. in Chicago. “There are enough questions about the weather forecast” to spur traders to reduce bets on lower prices, Hunt said.

Corn futures for December delivery rose 19.75 cents, or 3 percent, to close at $6.8025 a bushel at 1:15 p.m. on the Chicago Board of Trade, the third straight gain. On June 17, the price touched $6.4775, the lowest since March 17.

Soybean futures for November delivery rose 14.25 cents, or 1.1 percent, to close at $13.4975 a bushel on the CBOT, capping the first two-day gain for the most-active contract since June 3. Yesterday, the price touched $13.30, the lowest since May 17.

In the U.S., corn is the biggest crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show. The nation is the world’s top exporter of the grain and oilseed.

--Editors: Steve Stroth, Daniel Enoch

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.


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