Corn jumps to 2-month high as dryness curbs US yields

FE Team | Published: August 29, 2022 20:55:40

SINGAPORE, Aug 29 (Reuters): Chicago corn futures rose for a second session on Monday to their highest in two months after a U.S. crop tour forecast lower production following hot and dry weather, raising concerns over global supplies.
Wheat gained more ground, while soybeans fell.
"The Pro farmer crop tour news is very bullish and suggests one of the tightest stocks/usage setups in history for the 2022/23 season," Hightower wrote in a report.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.7% at $6.69 a bushel, as of 0152 GMT, after climbing to its highest since June 24 at $6.74.
Wheat rose 0.3% to $8.07-1/2 a bushel and soybeans lost 0.8% to $14.49-3/4 a bushel.
Advisory service Pro Farmer projected a U.S. corn harvest of 13.759 billion bushels, which would be the smallest since 2019 and below government forecasts for 14.359 billion bushels.
Pro Farmer predicted a soybean crop of 4.535 billion bushels, slightly bigger than the U.S. Department Agriculture forecast for a record 4.531 billion bushels.
Lower U.S. corn production outlook is adding to concerns over tightening global production of grains, including wheat and rice.
Ukraine's 2022 wheat harvest is 98% complete at 18.8 million tonnes, data from the country's agriculture ministry showed.