The price of corn and soybeans after this year’s harvest rose on speculation that hot, dry weather will increase stress on crops in the U.S., the world’s biggest producer. Wheat advanced on signs of improving export demand.
The lack of rain will deplete soil moisture for most fields from Arkansas to Ohio during the next five days before cooler weather and light showers return by May 30, Global Weather Monitoring said in a report. Rainfall will be restricted by low humidity and dry subsoil, increasing potential crop stress, the private forecaster said.
“The forecasts are still saying it will be warmer and drier than normal, and that reduces selling interest,” Jason Roose, a broker and market analyst for U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “Weather will be the main focus for the next several months.”
Corn futures for delivery in December, after the harvest, rose 1.2 percent to $5.21 a bushel at 10:51 a.m. on the Chicago Board of Trade. The contract for July delivery, the most actively-traded and widely-held, advanced 0.2 percent to $5.7975, after gaining as much as 1.9 percent.
For the week, the most-active futures are down 8.8 percent on concern that the European debt crisis will slow the global economy and curb commodity demand.
Soybean futures for July delivery rose 0.5 percent to $13.83 a bushel in Chicago. Soybeans for delivery in November, after the harvest, rose 0.9 percent at $12.8775.
Wheat futures rose on speculation that a drop in global production will boost demand from supplies from the U.S., the biggest exporter, Roose said. U.S. exporters are winning business from Russian suppliers whose domestic prices are too high, Arkady Zlochevsky, Russia’s grain union president, said in Moscow today.
World wheat production will fall 3.5 percent to 670.5 million metric tons in the year that begins June 1, down from a record 694.8 million harvested a year earlier, the International Grain Council said in a report. U.S. exporters sold 754,599 tons of wheat for delivery after June in the week ended May 17, up from 389,616 a week earlier, the U.S. Department of Agriculture said yesterday.
“The market is looking for a rebound in export sales,” Roose said. “Wheat yields have been reduced and may get a little smaller.”
Wheat futures for July delivery jumped 2.8 percent to $6.815 a bushel in Chicago, after falling 5.8 percent the past three sessions on speculation that rains may revive crops in Russia and Ukraine.
Corn is the most valuable U.S. crop, followed by soybeans, hay and wheat, USDA data show.
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