Corn capped the first weekly gain since early May and soybeans rose on speculation that production will be curbed by excessive rain in the U.S., the world’s top producer of both crops.
Some areas of Iowa, Minnesota, South Dakota and Nebraska have received more 12 inches (30 centimeters) of rain this month, stunting root development and yield potential in about 11 percent of the U.S. growing area, according to T-Storm Weather LLC in Chicago. Corn tumbled 12 percent in the previous five weeks on the outlook for record U.S. production.
“Speculation that flooding and excessively wet soils may trim yields triggered some of the buying,” Roy Huckabay, an executive vice president for Linn Group in Chicago, said in a telephone interview. “Farmers are not selling with the concerns about flooding, and that supported a firming cash market.”
Corn futures for December delivery rose 1 percent to close at $4.52 a bushel at 1:15 p.m. on the Chicago Board of Trade. The grain rose 1 percent this week, the first advance since May 9.
Soybean futures for November delivery rose 0.3 percent to $12.315 a bushel in Chicago. The price climbed 0.8 percent this week.
Wheat futures for September delivery fell 1.5 percent to $5.9325 a bushel. The price rose 2 percent in the previous two days on concern that rain in the Great Plains will erode the quality of crops as the harvest begins.