Corn advanced to the highest level in almost eight weeks on speculation that demand for supplies from the U.S. may increase as dry weather in Argentina threatens yields and rains in Brazil delay the harvest.
Corn for March delivery rose as much as 0.5 percent to $7.4375 a bushel on the Chicago Board of Trade, the highest price for the most-active contract since Dec. 7, and was at $7.4024 at 10:49 a.m. in Singapore. Futures, 6.3 percent higher this month, are set for the first monthly gain since July.
Hot and dry weather may increase stress to reproductive and filling crops in Argentina before some showers expected this weekend, forecaster DTN said in a report yesterday. Heavy storms in Brazil’s northern growing areas will continue to delay and disrupt the early harvests, DTN said.
“The weather is a very important concern of the farmers in the market,” Tetsu Emori, a commodity fund manager at Astmax Co., said by phone from Tokyo today. “As long as the weather conditions are not very beneficial during the growing period of the grains, it should affect the production.”
Wheat for March delivery was little changed at $7.86 a bushel. The grain is set to gain 1.2 percent this month, the first such advance since September. Soybeans for March delivery lost 0.3 percent to $14.75 a bushel, paring the monthly advance to 4.6 percent.
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