Corn rises on weather concerns
U.S. corn futures are trading higher Monday morning, boosted by higher wheat prices and concerns about dry weather in U.S. corn-growing regions.
In electronic trading, CBOT futures for July delivery are up 1 3/4 cents at $6.37 1/4 a bushel. December corn is up 6 1/4 cents at $5.43 1/4 a bushel.
CME Group Inc. on Sunday evening expanded electronic grain-futures trading to 21 hours a day. Electronic trading now stops only between 3 p.m. and 6 p.m. EDT daily through Friday each week. Trading previously stopped between 8:15 a.m. to 10:30 a.m., and 2:15 p.m. to 7 p.m. EDT.
Corn futures are up partly on strength in wheat, with which corn competes in the animal feed market. Wheat futures are trading higher Monday morning after already surging dramatically last week on concerns about dry weather in key world wheat production regions.
Corn is also being lifted by concerns about dry weather in parts of the U.S. While rains have been sufficient in the northern Midwest, conditions are drier farther south.
"It's Kansas, it's southern Missouri...kind of that southern corn belt area," said Tregg Cronin, analyst with brokerage Country Hedging in Minnesota. "North of there conditions are very good."
Optimism about more demand from China for U.S. corn could also be boosting futures. Chinese government data on Monday showed the country's April corn imports more than doubled from a year earlier to 16,421 metric tons.
Corn traders will be watching for the USDA's weekly crop progress report due out at 4 p.m. EDT Monday. This week's report will be the first to include condition ratings for the freshly planted U.S. corn crop.
--By Owen Fletcher, Dow Jones Newswires; 312-750-4120; firstname.lastname@example.org
(END) Dow Jones Newswires
May 21, 2012 10:25 ET (14:25 GMT)