Corn futures rose to an 11-week high, and soybeans jumped to the highest in almost five months on concerns that hot, dry weather in the U.S. Midwest is eroding crop yields. Wheat also gained. U.S. farmers may harvest 12.484 billion bushels of corn this year, the Professional Farmers of America newsletter said today after completing a four-day tour of Midwest fields. The estimate was 3.3 percent below the U.S. Department of Agriculture’s forecast. Iowa and Illinois, the biggest growers of corn and soybeans, had the hottest July since 1955, and rainfall has been below normal this month. “The markets are more and more focused on the supply side of the grains and the threats there,” Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview. “There’s a lot of nervousness as to what’s out in those fields.” Corn futures for December delivery jumped 23.5 cents, or 3.2 percent, to settle at $7.67 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price reached $7.685, the highest for a most-active contract since June 9. The commodity is up 15 percent this month. Soybean futures for November delivery rose 30.75 cents, or 2.2 percent, to $14.235 a bushel. Earlier, the oilseed touched $14.26, the highest since March 31. Pro Farmer projected soybean production at 3.083 billion bushels, or 0.9 percent above the USDA’s estimate. The forecasts were released after markets closed in Chicago. ‘A Little Bearish’ The higher soybean forecast was “a little bit bearish,” and may push prices lower next week, said Christian Mayer, a market adviser at Northstar Commodity Investments Co. in Minneapolis. “August is still an important time for beans,” Mayer said in a telephone interview. “We haven’t seen a lot of great rain lately, so there are still areas that are concerning. They could surely use some rain, or we may see things deteriorate further.” Wheat futures for December delivery rose 9.25 cents, or 1.2 percent, to settle at $7.97 a bushel on the CBOT. The price is up 4.7 percent this week, the fifth straight weekly gain. Futures were supported by speculation that U.S. spring-crop yields will be lower than the government expects, and concerns that dry weather will harm plants in the Great Plains, Mayer said. Corn is the largest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government data show. Wheat ranks fourth at $13 billion, behind hay. To contact the reporter on this story: Whitney McFerron in Chicago at wmcferron1@bloomberg.net To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

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