Corn, wheat rise
Sunday, 9 May 2010
NEW YORK, May 8 (Bloomberg): Corn and wheat futures rose in Chicago on speculation that freezing weather will harm crops in the US, the biggest exporter of both grains.
Freezing or near-freezing temperatures over the weekend may stunt Midwest corn that has begun to emerge and damage wheat that is maturing from northern Kansas to southern Michigan, said Allen Motew, a meteorologist at QT Weather in Chicago. Above- normal rains next week across most of the eastern US will delay final corn planting after a record start, Motew said.
"The cold weekend forecast is encouraging people to cut short positions," said Tim Hannagan, a market analyst for PFG Best Inc. in Chicago. "People are buying on the price breaks because we have gotten past the peak in the bearish supply news."
Corn futures for July delivery rose 0.75 cent, or 0.2 per cent, to $3.72 a bushel on the Chicago Board of Trade, erasing an earlier loss of 1.1 per cent. The most-active contract fell 0.9 per cent this week after gaining 3.9 per cent last week on speculation the Greek credit crisis slow the global recovery and demand for the grain to produce food, animal feed and fuel.
Wheat futures for July delivery rose 2.25 cents, or 0.4 per cent, to $5.105 a bushel, after earlier falling 1.9 per cent. The price rose 1.5 per cent this week, the fifth gain in six weeks.
About 68 per cent of the US corn crop was planted as of May 2, up from 50 per cent a week earlier and 32 per cent a year earlier, the Department of Agriculture said this week.
Freezing or near-freezing temperatures over the weekend may stunt Midwest corn that has begun to emerge and damage wheat that is maturing from northern Kansas to southern Michigan, said Allen Motew, a meteorologist at QT Weather in Chicago. Above- normal rains next week across most of the eastern US will delay final corn planting after a record start, Motew said.
"The cold weekend forecast is encouraging people to cut short positions," said Tim Hannagan, a market analyst for PFG Best Inc. in Chicago. "People are buying on the price breaks because we have gotten past the peak in the bearish supply news."
Corn futures for July delivery rose 0.75 cent, or 0.2 per cent, to $3.72 a bushel on the Chicago Board of Trade, erasing an earlier loss of 1.1 per cent. The most-active contract fell 0.9 per cent this week after gaining 3.9 per cent last week on speculation the Greek credit crisis slow the global recovery and demand for the grain to produce food, animal feed and fuel.
Wheat futures for July delivery rose 2.25 cents, or 0.4 per cent, to $5.105 a bushel, after earlier falling 1.9 per cent. The price rose 1.5 per cent this week, the fifth gain in six weeks.
About 68 per cent of the US corn crop was planted as of May 2, up from 50 per cent a week earlier and 32 per cent a year earlier, the Department of Agriculture said this week.