April 30 (Bloomberg) -- Corn prices in Chicago rose, heading for an eighth straight monthly gain on speculation U.S. farmers will plant less in favor of other more profitable crops. Soybeans advanced for the first time in six days and wheat was also higher.

Corn, which reached a record $6.24 a bushel yesterday, has gained 7 percent this month. The Department of Agriculture said on April 28 that cold, wet weather delayed crop planting in the U.S., the world's biggest producer. The USDA on March 31 forecast an 8.1 percent drop in corn planting this year to 86.014 million acres as farmers sowed more soybeans and wheat.

``Compared with soybeans and wheat, corn is still bullish as people expect the acres in the U.S. will fall following planting delays,'' Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co., said by telephone from Tokyo today. More delays may drive U.S. farmers to switch to soybeans from corn.

Corn for July delivery rose 2.5 cents, or 0.4 percent, to $6.07 a bushel in after-hours electronic trading on the Chicago Board of Trade at 4:13 p.m. Singapore time. The most-active corn contract has gained 65 percent in the past year on record demand for livestock feed and biofuels.

Soybeans for July delivery gained as much as 14 cents, or 1.1 percent, to $13.075 a bushel and traded at $13.05 at 4:10 p.m. Singapore time. The contract fell in the past five days on speculation the corn crop planting delays will force some U.S. farmers to switch to the oilseed.

Soybeans have surged 79 percent in the past year, reaching a record $15.8625 on March 3, after U.S. farmers last year planted the lowest area in more than a decade.

Dollar Strength

Soybeans and corn were also under pressure yesterday from speculation that the dollar's strength will reduce the appeal of commodities as an inflation hedge. The UBS Bloomberg Constant Maturity Commodity Index advanced 34 percent in the past year and the U.S. Dollar Index, a measure of the value of the U.S. dollar against six others, fell 11 percent.

Wheat for July delivery was up 3 cents at $8.115 a bushel at 4:11 p.m. Singapore time. The contract fell 3.9 percent yesterday as the USDA report showed winter-crop conditions unexpectedly improved.

Wheat prices declined 13 percent this month, losing for the second straight month. Futures are still up 67 percent in the past year, reaching a record $13.495 a bushel on Feb. 27.

About 46 percent of the winter-wheat crop was in good or excellent condition as of April 27, compared with 45 percent a week earlier and 56 percent a year earlier, the USDA said.

In the export markets, Tunisia plans to buy at least 25,000 tons of durum wheat and 25,000 tons of soft milling wheat at a tender today, while Iraq plans to buy at least 50,000 tons of wheat of any origin at a tender by May 8.

Brazil, the world's biggest buyer of wheat, may eliminate a tariff on more imports of the grain from countries outside the Mercosur trade bloc.

The country this year eliminated a 10 percent tariff on as much as 1 million tons of wheat imports and may increase the quota if Argentina, a member of the trade bloc, doesn't guarantee shipments, Armando Meziat, secretary of production development at Brazil's Trade Ministry, said yesterday.

To contact the reporter for this story: Jae Hur in Singapore at jhur1@bloomberg.net

Last Updated: April 30, 2008 05:04 EDT