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Corn futures hit 3-day high on U.S. crop concerns

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Futures Pros - Corn futures were up for a third day down on Monday, as persistent rain in key U.S. corn-growing regions threatened to further delay planting in the U.S.

On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.9125 a bushel during European morning trade, jumping 1.17%.

It earlier rose to USD6.9938 a bushel, the highest price since May 11.

The Commodity Weather Group said that it expected persistent rainfall in the U.S. Great Plains to continue through May 18, while heavier precipitation was forecast to return to the U.S. Midwest between May 19 and May 21.

The rainy forecast added to concerns that U.S. farmers would delay planting of corn crops, potentially threatening yields and reducing the quality of the harvest.

The U.S. Department of Agriculture said in a report last week that approximately 40% of U.S. corn crops were planted as of May 8, down from 80% planted during the same week a year earlier and lower than the five-year average of 59% for this time of year.

According to the U.S. Grains Council, nearly 85% of the crop needed to be planted by May 22, or farmers faced higher risks that yields would fall below the historical average.

The U.S. is both the world's largest corn producing nation and the world's largest exporter of the grain.

Elsewhere, wheat for July delivery climbed 0.9% to trade USD7.3562 a bushel, while soybeans for July delivery added 0.15% to trade at USD13.3275 a bushel during European morning trade.

The Australian Bureau of Statistics said in a report earlier in the day that wheat exports from Australia declined for the first time in four months in March, dropping by 5.6% to 1.7 million tons.

Australia is the world's fourth largest wheat exporter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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