Corn futures advanced as rains in the Midwest, the largest U.S. growing region, threatened to further delay sowing, while cold temperatures may hurt the crop that’s already been planted. Wheat and soybeans also climbed. July-delivery corn advanced as much as 1.2 percent to $7.6825 a bushel on the Chicago Board of Trade, before trading at $7.67 at 9:41 a.m. in Singapore. Wheat for July delivery gained 0.6 percent to $8.1675 a bushel, while soybeans for delivery in the same month rose 0.2 percent to $13.875 a bushel. The eastern and southern Midwest and Delta regions may have “severe flooding” in the 10 days from yesterday, Telvent DTN Inc. said in a forecast yesterday. In Europe, rains forecast in the driest areas of western Germany, northern France and England won’t be enough to end crop concerns in the winter-wheat, corn- and rapeseed-growing areas, it said. The rally in corn “is a continuation of concerns about the weather and the ability to get corn planted on time,” Michael Pitts, a commodity sales director at National Australia Bank Ltd., said by phone from Sydney today. “It’s really about the U.S. weather report and the European weather report.” About 9 percent of the corn crop was planted in the U.S. as of April 24, compared with 46 percent at the same time last year, the Department of Agriculture said in an April 25 report. About 85 percent of the crop needs to be planted by May 15, or farmers face higher risks that yields will fall below the historical average, Jay O’Neil, an adviser to the U.S. Grains Council, said in an interview yesterday. The crop harvested last year in the U.S., the world’s largest grower, represents about 39 percent of global production, according to USDA data. Below Freezing Temperatures will drop below freezing twice next week in the upper Great Plains, where soil temperatures in some areas are below normal at prime planting time, said Allen Motew, a meteorologist with QT Information Systems in Chicago. Corn won’t germinate in soil below 50 degrees, according to Iowa State University’s agronomy extension school. Ground temperatures are important because a late start to planting may affect how much can be harvested. In northeastern Iowa, for example, corn needs to be planted from April 12 to May 2 in order to reach a yield of 95 to 100 percent, according to the university. Iowa is the largest U.S. corn producer, accounting for about 15 percent of the acreage planted area last year. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Source