Corn posts big weekly gain

Corn futures rose on Friday, extending gains in a weather-fuelled rally that drove the market to a more than 4 percent weekly rise. Hot temperatures are beginning to blanket the US Corn Belt just as the corn crop enters its crucial pollination phase. Chicago Board of Trade soyabeans also rose on the hot forecast while wheat fell on concerns about US exports.
Hot and dry weather is expected in the US Midwest for at least five to seven days. "We're going to see a continuing period of net dry (weather) that will put some stress on the crops," said Terry Reilly, analyst at Citigroup in Chicago. "Traders are certainly worried about crop conditions."
Corn continued to pile up gains on the forecast for "absolutely scorching temperatures" as the trade widely agreed on the heat's impact, said Lee Gaus, vice president of International Futures Group. The threat of heat damage comes on the heels of Tuesday's report from the US Department of Agriculture which forecast US corn supplies will fall to a 15-year low before the autumn harvest.
Chicago Board of Trade corn for September delivery gained 1.5 percent, or 10-1/2 cents, to $7.01-1/4 per bushel, notching the contract's seventh straight gain. The nearby contract, on a continuous basis, posted a 4.3 percent weekly gain, nearly matching the previous week's climb.
Soyabeans, which are also widely grown in the Midwest, are still a couple of weeks from their critical pod-developing stage, but the forecast for little precipitation in July is supportive, Reilly said. August soyabeans touched a five-week high before edging up 0.3 percent, or 3-3/4 cents, to $13.85-3/4 per bushel. The nearby contract finished with a 2.5 percent weekly gain, the largest in eight weeks.
Wheat futures slipped after Egypt, the world's top wheat importer, bypassed US offerings and purchased Russian supplies. September wheat lost 1.7 percent, or 12-1/4 cents, to $6.94-3/4 per bushel, but still registered a 6.8 percent weekly gain, its second-largest in eight weeks.