You are here

GRAINS-Corn at 7-week high on U.S. planting delays, soybeans extend rally

* Corn up nearly 5 pct in 2 sessions * Soybeans extend rally on as US-China war concerns ease (Updates prices, adds details) By Naveen Thukral SINGAPORE/PARIS, May 15 (Reuters) - Chicago corn rose for a third consecutive session to hit a 7-week high on Wednesday, gaining nearly 5 percent over two days, as concerns over planting delays in the U.S. Midwest underpinned the market. Soybeans extended their rally from the last session, after U.S. President Donald Trump eased concerns about a U.S.-China tariff war. The most-active corn contract on the Chicago Board of Trade rose 2.2 percent to $3.76-3/4 a bushel by 1050 GMT, a price unseen since March 27, after closing up 3.4 percent in the previous session when prices hit a high of $3.70-3/4 a bushel - their loftiest point since May 3. Soybeans rose 1.4 percent to $8.43-1/2 a bushel and wheat was up 1.3 percent at $4.54-1/2 a bushel. U.S. farmers seeded 30 percent of the U.S. 2019 corn crop by Sunday, the government said, lagging the five-year average of 66 percent as well as the average estimate in a Reuters analyst survey of 35 percent. The soybean crop was 9 percent planted, behind the five-year average of 29 percent and the average trade estimate of 15 percent. "This weather risk is amplified by the large short position speculative funds are holding in corn and beans," said Ole Houe, director of advisory services at brokerage IKON Commodities. "Mind you the corn weather issue is not necessarily a small one." Soybeans jumped from 10-year lows on Tuesday on optimistic comments from U.S. President Donald Trump. Trump on Tuesday called the trade war with China "a little squabble" and insisted talks between the world's two largest economies had not collapsed, though investors remained on guard for a further escalation of tit-for-tat tariffs. The U.S. soybean processing pace in April was expected to be above last year and the highest ever for the month as soy plants took advantage of good margins and ample supplies of beans, according to analysts polled ahead of a monthly industry report. Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said. Trader estimates of net fund buying in corn ranged widely from 30,000 to 70,000 contracts and in soybeans from 13,000 to 30,000 contracts. Prices at 1050 GMT Last Change Pct End Ytd Move 2018 Pct Move CBOT wheat Dec 454.50 6.00 1.34 503.25 -9.69 CBOT corn Dec 376.75 8.00 2.17 375.00 0.47 CBOT soy Dec 843.50 12.00 1.44 895.00 -5.75 Paris wheat Mar 171.50 1.00 0.59 190.50 -9.97 Paris maize Nov 164.50 0.50 0.30 178.50 -7.84 Paris rape Aug 364.00 2.75 0.76 364.50 -0.14 WTI crude oil 60.94 -0.84 -1.36 45.41 34.20 Euro/dlr 1.1199 0.00 -0.04 1.1469 -2.35 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Naveen Thukral; Additional reporting by Sybille de La hamaide, Editing by Richard Pullin/Mark Heinrich)

© Copyright Thomson Reuters 2019. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about

Tip of the Day

Tech Tip: Pictures Really Are Worth a Thousand Words

Whenever possible, get pictures of any used precision ag technology items you are interested in buying.

Talk in Marketing