June 29 (Bloomberg) -- Corn advanced for a second day, extending the biggest gain in almost three months, and soybeans rose on declining crop conditions in the U.S., the biggest exporter of both commodities.
U.S. corn was rated 68 percent good or excellent as of June 26, down from 73 percent a year earlier, the Department of Agriculture said this week. Sixty-five percent of soybeans earned top ratings, down from 67 percent in 2010, USDA data show.
“Crop conditions in the U.S. have deteriorated from the previous week,” Rabobank International said in a report today. Lower crop ratings are “providing some support to soybeans. The focus is now on crop conditions and their evolution, rather than planting progress,” analysts including Luke Chandler said.
Corn for December delivery climbed 16.5 cents, or 2.5 percent, to $6.695 a bushel on the Chicago Board of Trade by 1:15 p.m. London time. The price gained 4.2 percent yesterday, the biggest single-day rise for the most-active contract since April 1.
Soybeans for November delivery climbed 15.25 cents, or 1.2 percent, to $13.3425 a bushel in Chicago. The price has risen 1.9 percent this week, gaining for three straight days.
“Supply concerns are starting to come to the fore again,” Michael Creed, an agribusiness economist at the National Australia Bank Ltd., said by phone from Melbourne today. “There’s still a fair bit of weather-related risk” to the next global harvests of corn, soybeans and wheat, he said.
Prices also may be rising ahead of the USDA’s annual acreage and quarterly stockpile reports set to be released tomorrow, Rabobank said. Corn futures jumped 29.5 cents, or 8.6 percent, on June 30 last year after the acreage report found farmers planted less than intended and the stockpiles report showed inventories were smaller than expected.
“Our fundamental analysis suggests prices should mirror the 2010 price action with a shift higher,” Rabobank said in its report.
Wheat futures advanced for a second day, extending the biggest daily gain for the most-active contract since May 18. The contract for September delivery rose 16.75 cents, or 2.5 percent, to $6.885 a bushel in Chicago. Milling wheat for November delivery gained 9.25 euros, or 4.7 percent, to 204.25 euros ($294.55) a metric ton on NYSE Liffe in Paris.
--With assistance from Sungwoo Park in Seoul. Editors: John Deane, Sharon Lindores
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