Grain futures edge higher on prospects for delays in field work

Grain futures rose on Wednesday on forecasts for showers in most of the major U.S. growing areas which would impair field work.

On the Chicago Board of Trade, soybeans futures for settlement in November rose by 0.44% to $12.7263 per bushel at 9:29 GMT. Prices held in range between days high and low of $12.7375 and $12.6613 per bushel respectively. The oilseed fell by 0.4% on Tuesday but losses were offset by Wednesdays rebound.

Elsewhere on the market, corn for delivery in December rose for a third straight day to a one-week high of $4.4588 per bushel at 9:18 GMT, up 0.38% on the day. Days low was touched at $4.4263 during Asian trading. The grain surged 1.5% yesterday, the biggest daily gain since September 6, and extended its weekly advance to 2.8% on Wednesday.

Corn and soybeans were supported as rains in the Midwest were seen delaying field work. DTN reported on October 15 that heavy rainfall in the western and northern parts of the western Midwest will impair the crop harvest, while recharging soil moisture in some areas. In Brazil, the worlds second biggest soybean producer and third biggest exporter, rains followed by lower temperatures will improve conditions for crop developing throughout the week but will delay harvests. The agency also predicted scattered showers in Argentinas major corn and soybean growing areas this weekend to provide similar conditions. The country is the second biggest exporter of the oilseed.

Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said, quoted by Bloomberg: “Harvest activities in the U.S. Midwest are currently being delayed because of rain, however favorable harvest weather is forecast for the remainder of the week.”

The U.S. Department of Agriculture said in its latest WASDE report that the nation will harvest a record 13.843 billion bushels of corn in 2013, 28% above last-year’s drought damaged crop. The next forecast update was scheduled for October 11 but was delayed due to the lapse of government funding.

Elsewhere on the market, wheat futures for settlement in December rose by 0.39% to $6.8788 per bushel at 9:03 GMT. The contract ranged between days high and low of $6.8788 and $6.8413 per bushel respectively. The grain fell by 0.9% on Tuesday but trimmed its weekly decline to 0.6% on Wednesday.

DTN reported yesterday that showers early this week in the Southern Plains will provide favorable conditions for developing of wheat but will cause delays in planting. In the Northern Plains, rains last week and early this week will keep slowing field work, the agency said. However, a drier trend is expected to begin but cool temperatures will slow the drying process.

Unfavorable conditions in Western Europe will also impair field work. Wet and cold weather in the region is expected to delay the harvest of summer crops and the planting of winter wheat and rapeseed. Conditions may improve later this week.

Gains in wheat prices were limited as a drier trend in Ukraine continued to improve conditions for the delayed field work on summer and winter crops, DTN reported. Conditions however may deteriorate later this week.