HAMBURG: Chicago corn futures rose for a seventh consecutive session on Tuesday, hitting their highest in almost a year as rain slowed US plantings, stoking fears that farmers will be forced to abandon sowing and face lower crop yields.
Wheat jumped to its highest in three months, underpinned by rain in US grain belts.
Chicago Board of Trade most-active corn rose 1.7pc to $3.95-3/4 a bushel at 1106 GMT, the highest since June 1, 2018. Corn has risen for seven sessions in a row as US sowings slowed.
Wheat was up 1.5pc at $4.85-3/4 a bushel, near the session high of $4.88 a bushel - the highest since Feb. 25. Soybeans rose 0.9pc to $8.39-3/4 a bushel.
The US Department of Agriculture (USDA) said after the market closed on Monday that 49pc of the US corn crop has been planted, behind analysts' expectations of 50pc and way below the five-year average of 80pc.
"The slow rate of corn plantings is again the main market focus," said Michael Magdovitz, senior agriculture commodities analyst at Rabobank.
"With the main corn planting window in the US open to the end of May and even more rain forecast next week, US farmers are now reaching a critical inflection point on planting decisions, including crop insurance.
"Late-sowed corn, even shorter-season varieties, could suffer yield penalties."
"Perhaps it is technically possible for the remaining half of the US corn crop to be planted in the next couple of weeks. However forecasts are calling for more rain, not less, a prerequisite to achieve this."
Brokerage Allendale added: "Keep in mind that given the opportunity, American farmers have proven their ability to plant a lot of acreage quickly.
Will the opportunity present itself?" The market has been too complacent about US corn plantings and weather, as reflected in the huge net short position in corn futures held by financial investors, Magdovitz said.
"The situation is still evolving but markets are facing a possible substantial reduction in the USDA's estimate of US corn acreage, particularly as large delays are being reported in states that were expected to see net increases to corn acres," Magdovitz added.
"Wheat is also seeing some support from wet weather in the US, including some quality concerns in Kansas and planting delays in the Dakotas."
The USDA said 19pc of the soybean crop has been planted, behind market expectations of 22pc and the five-year average of 47pc.
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