July 19 (Bloomberg) -- Corn climbed in Chicago on speculation hot weather in parts of the U.S., the world’s largest producer and exporter, will curb supplies. Wheat gained.
The National Weather Service yesterday issued an excessive heat watch, with temperatures feeling hotter than 105 degrees Fahrenheit (41 degrees Celsius), for parts of Indiana, Illinois, Missouri and Kentucky. Corn crop yields may be reduced in Iowa, Illinois, Missouri and Kansas amid high temperatures and low rainfall, according to Commodity Weather Group.
“Well above normal daytime and night time temperatures will put extreme stress on corn during the next three to five days,” Joel Burgio, an agriculture meteorologist at Telvent DTN Inc., said in a report yesterday.
Corn for December delivery climbed 15.25 cents, or 2.3 percent, to $6.9225 a bushel by 11:51 a.m. London time on the Chicago Board of Trade. The price has gained 75 percent in the past year.
Iowa and Illinois are the two largest growers in the U.S., accounting for 29 percent of the corn area planted and 24 percent of the soybean acreage, according to U.S. Department of Agriculture data.
About 66 percent of the corn in the top 18 producing states was in good or excellent condition as of July 17, down from 69 percent a week earlier and 72 percent a year earlier, the USDA said in a report yesterday.
Soybeans for November delivery gained 5 cents, or 0.4 percent, to $13.9125 a bushel in Chicago.
An estimated 64 percent of the soybean crop got the top ratings, compared with 66 percent a week earlier and 67 percent a year earlier.
Wheat for September delivery rose 16.25 cents, or 2.4 percent, to $7.0575 a bushel, the first increase in four days. Milling wheat for November delivery rose 4 cents, or 2.1 percent, to 199.50 euros ($283) a metric ton on NYSE Liffe.
--With assistance from Phoebe Sedgman in Melbourne, Tony Dreibus in London, Jeff Wilson in Chicago and Christine Buurma in New York. Editors: Ovais Subhani, Thomas Kutty Abraham
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