Chicago Board of Trade corn futures were locked limit-up on Tuesday, reaching the 20-cent daily trading limit through July 2005 on crop fears after weekend storms dumped more rain on the US Midwest, traders said.
New-crop December corn was 20 cents higher at $3.17-1/4 per bushel by 10:52 am CDT (1552 GMT). Among the early buyers was Cargill Investor Services with 3,000 December. There was commercial hedge pressure, likely farmer sales, which was easily absorbed by the market, traders said.
The heavy rains were forcing some farmers to replant corn acres, but they still had to wait for fields to dry out. Others would likely switch some corn acres to soybeans, which can be planted later, if their fields failed to dry this week, traders said.
From 0.75 to 2.50 inches of rain fell over a widespread area of the Midwest this weekend with "locally heavier amounts," said Meteorlogix forecaster Mike Palmerino.