Corn hits one-week high on US crop worries, soybeans firm

Chicago corn reached a one-week high on Wednesday, while soybeans gained further as fears of shrinking US crop conditions boosted prices, according to wire reports. The most-active corn contract on the Chicago Board of Trade closed 0.1% higher at $5.08-1/4 a bushel, having peaked since September 30 earlier in the day. Wheat retreated slightly to $7.03-1/2 a bushel after a rise on Tuesday, while soybeans added 0.3% to $13.07-1/4 a bushel.

Traders are watching Midwest weather forecasts as farmers accelerate harvesting, following rain delays last week. The US Department of Agriculture revealed on Monday that farmers had harvested 23% of their corn and 25% of their soybeans as of Sunday, lower than expected and below the typical rate over the past five years. Additionally, the USDA reduced its estimate of corn crops in good-to-excellent condition more than anticipated.

Concerns about crop quality and oil content have arisen due to recent rains, which have prompted speculation regarding soybean health. The USDA is scheduled to release its US corn and soybean harvest outlooks in a monthly supply-and-demand report on Friday. Two merchant vessels, one carrying grain, were attacked by drones in the Black Sea off Bulgaria on Tuesday, while another was targeted off Romania’s territorial waters on Monday, an incident blamed by Ukraine on Russian drones.

Meteorologist Kyle Tapley noted that a powerful El Nino is creating a split South American weather market, boosting crop prospects in Argentina while raising early concerns over dryness in northern Brazil that could jeopardize the country’s key safrinha corn crop.