Corn advanced for a third day, poised for the longest run of monthly gains since 2010, after the U.S. Department of Agriculture said planting in the world’s largest producer and exporter trailed a five-year average.
The contract for July delivery climbed as much as 0.7 percent to $5.1725 a bushel on the Chicago Board of Trade and was at $5.1675 by 11:45 a.m. in Singapore. Prices are set to advance a fourth month, the longest rally since October 2010.
About 19 percent of the corn crop was planted as of April 27, the USDA said yesterday. While that compares with 6 percent a week earlier, it is behind the 28 percent completed on average in the prior five years, it said. Slow planting progress has seen the large risk premium that built through March remain in the market, Macquarie Group Ltd. said in a report yesterday.
“We’re still lagging the 5-year average,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney today. While “U.S. corn farmers can plant at a very rapid rate when conditions improve, there might be some underlying support being provided by the slow pace that we’ve observed to date.”
Conditions are unfavorable for fieldwork and planting in the Midwest this week, with wet conditions and colder temperatures, DTN said yesterday. There is no significant window of opportunity for corn planting during the next seven to 10 days, it said.
Wheat for July delivery dropped 0.4 percent to $7.055 a bushel, snapping a five-day advance. Soybeans retreated 0.2 percent to $14.975 a bushel.
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