Corn futures rose, capping the largest weekly gain in 13 months, on speculation that dry, warm weather next week will increase stress on crops in the U.S., the world’s biggest producer and exporter. Soybeans also rose.
Dry weather will extend through the end of June for most of the Midwest, where at least 50 percent of subsoil has been rated below normal since May 31, Chicago-based T-Storm Weather LLC said in a report. About 32 percent of the domestic crop is under stress, and temperatures will rise as the plants begin to pollinate, the forecaster said.
“The market is adding weather-risk premium into prices,” Richard Feltes, the vice president of research at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “Until there is a widespread soaking rain in the eastern Midwest, the crop will continue to decline daily.”
On the Chicago Board of Trade, corn futures for December delivery, the contract with the highest open interest, rose 0.7 percent to close at $5.54 a bushel at 1:15 p.m. This week, the price surged 9.5 percent, the most since May 2011. The grain has declined 14 percent this year.
Corn futures for July delivery climbed 0.8 percent to $5.91. Options on the contract expired today.
Soybean futures for November delivery rose 0.3 percent to $13.755. The most-active contract gained 4.7 percent this week. This year, the oilseed has climbed 14 percent, the biggest gain among 24 raw materials in the Standard & Poor’s GSCI Spot Index.
Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government data show.