Corn Rises for Second Day as Dryness May Reduce Argentine Crop

Corn rose for a second day in Chicago on speculation dry weather may hurt crop yields in Argentina, the world’s second-biggest exporter of the grain. Wheat advanced.

Central and southern areas of Argentina may see only a few light showers today and conditions might stay dry through Jan. 31, when temperatures may climb as high as 99 degrees Fahrenheit (37 degrees Celsius), forecaster DTN said today. Some regions might see some showers starting Feb. 1 before dryness returns Feb. 3. Argentina’s corn crop may total 26.5 million metric tons, the Rosario Grains Exchange said Jan. 24. That would miss the U.S. Department of Agriculture’s 28 million-ton forecast.

“The uncertainty of South American weather remains a focus,” Paul Georgy, president of broker Allendale Inc., said today in an e-mailed report. “Weather models are not in agreement on temperatures and when rain might arrive in production areas of Argentina.”

Corn for delivery in March gained 0.2 percent to $7.31 a bushel at 6:50 a.m. on the Chicago Board of Trade. Prices rose 1.2 percent yesterday, the most in two weeks.

Wheat for delivery in March added 0.2 percent to $7.805 a bushel, erasing a drop of as much as 0.4 percent. In Paris, milling wheat for the same delivery month increased 0.4 percent to 248.25 euros ($333.57) a ton on NYSE Liffe.

Wheat ratings in Kansas, the biggest U.S. producer of winter varieties of the grain, fell from a month earlier, cutting prospects for crops that are in dormancy. The crop was rated 20 percent good or excellent as of Jan. 27, down from 24 percent on Dec. 30, the USDA said yesterday.

“Conditions within the Great Plains of the U.S. still remain very alarming, even though there are some forecasts for some scattered precipitation this week,” Luke Mathews, a Sydney-based analyst at Commonwealth Bank of Australia, said by phone today.

Soybeans for delivery in March were little changed at $14.4825 a bushel in Chicago. The oilseed rebounded from a decline of as much as 0.5 percent.

Before it's here, it's on the Bloomberg Terminal.