Corn for December delivery surged to the highest level. A report of the U.S. Department of Agriculture, scheduled for today, may show wet weather has slowed the planting process in the preceding week. As of the week ending May 19 71% of the corn crop was planted, compared to 95% last year and which was a bit below the five-year average of 71%. Also, during the same week only 24% of the U.S. soy crop was planted, way below the 71% planted the same period last year. The update of the report will be published today, but Iowa and central Illinois, the largest corn and soybean states, had twice as the average for the season rain last week.
Earlier on the Chicago Board of Trade, corn futures for December delivery were up 1,3% on the day and traded at $5,435 a bushel. Soybeans futures for July delivery were up 0,75% on the day and traded at $14,8675 a bushel.
Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone in Dublin, said in an e-mail for Bloomberg: “Rains have slowed fieldwork. Any additional slowdown will drive concerns on yield penalty for corn. Where corn plantings slow, beans also slow.”
According to forecasts by Commodity Weather Group, there might be heavy rains as much as 15 centimeters from Missouri to Michigan starting May 30. Southeast Iowa and parts of Illinois will be at risks for floods.
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