Corn set for biggest weekly gain in 17 months on harvest delays

17 Oct, 2014

SYDNEY: US corn futures rose for a second session on Friday as the grain was set to post its biggest weekly gain in more 17 months due to harvest delays

caused by rain.

FUNDAMENTALS

Chicago Board Of Trade front-month corn is up more than 6 percent for the week, its biggest weekly rally since May 2013.

Front-month soybeans rise to be up more than 5 percent for the week, the third straight weekly gain and the biggest weekly rally since August.

Front-month wheat gains to be up nearly 4.5 percent for the week, the third consecutive weekly gain and the biggest rally in since April.

The US Department of Agriculture said on Tuesday in its latest weekly crop report that the corn harvest was 24 percent completed, compared with the five-year average of 43 percent.

The USDA said the soybean harvest was 40 percent complete as of last Sunday. This was well above market expectations but behind the five-year average of 53 percent.

Farmers in Argentina are expected to plant from 20.6 million to 20.9 million hectares (50.9-51.6 million acres) with soybeans this year, up from 20.2 million hectares in the previous season, the Rosario grains exchange said on Wednesday.

But the absence of rain in the last two weeks threatened crop potential in Mato Grosso, Brazil's top soybean-growing state, as producers struggled to plant on schedule.

MARKET NEWS

The yen started trade on Friday well off its highs after another choppy session overnight where some calm returned to Wall Street thanks to encouraging US data that helped take the edge off global growth jitters.

Oil prices rose in volatile trade on Thursday, as data showing tight US gasoline supplies and technical trading ahead of options expiry provided rare support amid a long downturn.

The S&P 500 and Nasdaq eked out slight gains on Thursday after another choppy session, as economic data eased fears about the potential effect of a weakening global economy on the United States.

Copyright Reuters, 2014

Read Comments