PARIS/SINGAPORE: Chicago corn hit its highest in three months on Wednesday, extending a sharp rise in the previous session, while wheat traded at two-week highs on worries about hot and dry weather threatening production.
Soybeans were also firmer, trading near Tuesday's highest since May 26.
The Chicago Board Of Trade most-active corn contract had added 0.6 percent to $3.79-1/2 a bushel by 1045 GMT, after hitting $3.80 earlier in the session, its highest since March 6. Corn gained 1.1 percent in the previous session.
"Although the condition of the corn crop improved last reporting week according to the US Department of Agriculture (USDA) ... there are now fears that the hot weather could spread from the US Great Plains to the corn-growing areas of the Midwest," Commerzbank said in a note.
The USDA late Monday rated 68 percent of the US crop as good to excellent, up from 65 percent a week earlier.
"The soybean price also profited, albeit only slightly. Its upside potential appears severely limited at present by the large South American crops reaching the market and the prospect of a record-high US soybean acreage this year," Commerzbank said.
Soybeans gained 0.5 percent to $9.26-3/4 a bushel, having firmed 0.2 percent on Tuesday.
Wheat rose more than 1 percent to $4.40-1/4 a bushel after hitting $4.41-1/4 a bushel, the highest since May 22, on concerns about dry weather threatening production of high-protein wheat in the United States.
"There is talk about spring wheat damage and poor conditions for the hard red winter wheat in the US because of harsh weather," said Kaname Gokon of Tokyo brokerage Okato Shoji.
"We are seeing a rebound in wheat and the market is likely to go higher towards $4.50 a bushel."
The USDA rated 55 percent of the US spring wheat crop in good-to-excellent condition, down from 62 percent a week earlier and 79 percent a year ago.
Spring wheat is a high-protein variety prized by millers for its quality. Concerns about the crop come at a time when traders are anxious about tightening supplies of high-protein wheat.
For winter wheat, 49 percent was rated good to excellent as compared with 50 percent a week ago and 62 percent last year.
Commodity funds were net buyers of CBOT corn, wheat and soybean futures on Tuesday, traders said.
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