Corn Extends Biggest Monthly Gain in 24 Years on U.S. Drought
Corn gained, extending the biggest monthly rally in more than two decades as the worst U.S. drought in half a century persists, threatening global supply.
December-delivery corn gained as much as 1.4 percent to $8.1675 a bushel on the Chicago Board of Trade after jumping to a record $8.205 yesterday. Futures, which surged 27 percent last month, the biggest monthly gain since 1988, traded at $8.15 at 12:31 p.m. Singapore time.
Temperatures in the Midwest will be mostly above normal in the six to 10 days from yesterday and a few areas in the northeastern part of the region may see normal rainfall, Telvent DTN Inc. said. Twenty-four percent of the U.S. corn crop was rated good-to-excellent as of July 29, the lowest since 1988, the U.S. Department of Agriculture said July 30.
“The Midwest weather forecast remained unfavorable,” Eric Bailon, president of Manila-based Paritas Trading Corp., said today. “Most of the corn crop was beyond repair.”
In the European Union, the largest corn-producing region after North and South America, output will fall to 61.7 million metric tons, from 66.8 million tons forecast last month and last year’s 67.7 million tons, the EU Commission said yesterday.
Soybeans for November delivery advanced as much as 1.2 percent to $16.60 a bushel, extending a 15 percent jump in July, the biggest monthly rally for the most-active contract since June 2008, and traded at $16.57.
About 29 percent of soybeans were in good-to-excellent condition as of July 29, the lowest ratings since 1988, according to the USDA. About 55 percent of the crop was setting pods, the USDA said July 30. That stage is when the plants begin to set the pods and fill them with seeds, making it critical for determining yields.
“The crop most impacted by this weather pattern during the next few weeks will be pod filling soybeans,” Telvent said yesterday.
Wheat for September delivery gained as much as 0.9 percent to $8.965 a bushel, after a 17 percent rally in July. Futures last traded at $8.9525 a bushel.
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