By Taylor Thomas, MarketWatch
CHICAGO (MarketWatch) — Corn futures headed higher Monday, looking to extend their gains into a third session in a row as dry weather continued to threaten crops in the Midwest.
Corn for December delivery CZ2 +3.41% was up 28 cents, or 3.9%, at $7.68 per bushel on the Chicago Board of Trade. Prices, based on the most-active contracts, haven’t traded at levels this high in more than 10 months, according to data from FactSet.
“The situation is becoming dire,” said Austin Damiani, a market analyst for Frontier Futures in Minneapolis, in an email interview. “Soil moisture deficits are the worst they’ve been in decades in many growing areas ... and as the yield falls we have to adjust the balance sheet to account for failed and abandoned acres.”
Weather concerns, the impetus behind much of the corn futures trade for the past few weeks, continue to be an issue for farmers, the fall harvest and investors.
“More storms are expected this week,” said Mitch Kasper, a principal with AG Investors. “If they disappoint, look for higher prices.”
High temperatures are expected throughout the Midwest for much of the week, according to National Weather Service predictions. While storms are expected, as Kasper said, total expected rainfall for most of the region comes in at under an inch total for the rest of the week.
Wheat and soybean futures tracked corn futures higher, with wheat poised to log gains for a fourth-straight session.
September wheat WU2 +2.98% tacked on 29 cents, or 3.4%, to $8.76 a bushel and November soybeans SX2 +1.95% added 34 cents, or 2.2%, to $15.87 a bushel.
Soybeans are now entering a particularly important period in the growing cycle, which may account for the increase in November contracts.
“Corn’s critical pollination period has just about come and gone, conditions nationwide could not have been worse,” said Chris Kraft, a futures trader and private investment manager based in Nashville. “Soybeans are now on the clock, and extended forecasts aren’t offering much relief.”
Taylor Thomas is a MarketWatch reporter, based in Chicago.
