Corn hits nearly one year peak as rains stall U.S. planting
* Chicago corn rises for 6th consecutive session
* Corn planting delays in U.S. Midwest support prices
* Kansas leads wheat gains as rain threatens winter crops
* Soybeans rebound after Friday slide
(Adds closing prices)
By Karl Plume
CHICAGO, May 20 (Reuters) - U.S. corn futures climbed for a
sixth straight session on Monday and touched their highest level
in nearly a year as rainy Midwest weather and waterlogged fields
stoked concerns about reduced plantings and lower yields for the
Wheat jumped to a three-month high on delayed spring wheat
planting in the northern U.S. Plains and excessive, potentially
crop damaging rains and flooding in the southern Plains,
including in top winter wheat state Kansas.
Soybeans rose in tandem with wheat and corn, lifted by short
covering following Friday's steep slide. Soybeans gained despite
stalled trade talks between the United States and China, the
world's top soy buyer.
Grain traders were primarily focused on soggy U.S. weather
that has delayed spring field work and on forecasts for
"The rains slowed corn and soybean planting, especially
across the western corn belt. Wet weather is expected to
continue across the western Midwest and the Plains this week,"
Kyle Tapley, meteorologist with Radiant Solutions, said in a
note to clients.
"Very little, if any, planting progress is expected in the
western corn belt this week," he said.
Analysts polled by Reuters, on average, estimated 50 percent
of the U.S. corn crop was planted as of Sunday, well behind the
five-year average of 80 percent for this point in the season.
Soybean plantings were seen at 22 percent done, versus 47
percent on average.
The U.S. Department of Agriculture is due to release its
weekly planting progress report on Monday afternoon.
"If we come in below 50 percent (on corn) as of Sunday, this
would be record low planting progress for any year since USDA
started the data series in 1980," said Rich Nelson, chief
strategist with Allendale Inc.
Delayed corn planting may prompt some farmers to shift to
seeding soybeans instead, or leave fields fallow. Farmers who
plant corn particularly late or under adverse weather conditions
could see below-average yields, Nelson said.
Chicago Board of Trade July corn ended up 5-3/4 cents
at $3.89 per bushel, after breaking through and holding chart
support at its 200-day moving average. The most-active contract
, which has climbed more than 10 percent over six sessions,
hit its highest level for a since June 1, 2018.
July soybeans rose 10 cents to $8.31-3/4 a bushel,
while CBOT July wheat surged 17-1/2 cents to a three-month
high of $4.78-1/4 a bushel.
Commodity funds hold large short positions in all grains
markets, leaving them susceptible to bouts of short covering.
(Reporting by Karl Plume in Chicago; Additional reporting by
Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by
Matthew Lewis and Grant McCool)
First Published: 2019-05-20 03:51:57
Updated 2019-05-20 21:04:32
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