HAMBURG: Chicago corn futures rose almost 2pc on Tuesday, climbing to a near 2-year high as forecasts of heavy rain across key US growing regions threatened further delays to plantings.
"Rain in the US grain and soybean belts is again the dominant issue today with planting delays expected for corn and soybeans," said Matt Ammermann, commodity risk manager with INTL FCStone.
"There is also increasing concern about quality damage and yield losses to US winter wheat crops."
Chicago Board of Trade most active corn was up 1.9pc at $4.12 a bushel at 1106 GMT, near Tuesday's peak of $4.15-1/4 a bushel - its highest since July 11, 2017.
Wheat rose 2.7pc to $5.03 a bushel, after climbing to its highest since Feb. 15 at $5.07-3/4 a bushel. Soybeans rose 1.4pc to $8.41-1/2 a bushel.
Above-normal rainfall is expected across most of the Midwest and Plains farm belt over the next 15 days, further delaying planting of corn and soybeans and potentially damaging the quality of the developing winter wheat crop, forecasters said.
"Weekend storms continued to pour heavy rains across a large part of the US growing region and threatens to slow an already delayed planting season," brokerage Allendale said.
US grains markets were closed on Monday for the Memorial Day holiday and are only now reacting to weekend weather.
"The rain just is not stopping and has been heavy, making the ground too soft to sow," Ammermann said.
"On Saturday it is June and US corn and soybean sowings should now be finishing."
"US sowings were at a slow rate last week and I think they will again be slow this week as the earth has not been able to dry out."
The US Department of Agriculture crop progress reports are due later on Tuesday.
"I think US corn plantings will be in the low 60pc levels and soybeans in the low 30pc levels," Ammermann said.
"There is a lot of concern in the market now about the slowness of plantings."
"A decent period of dryness is now needed for the US corn and soybean plantings to be done."
Meanwhile, the large net short positions held by financial investors is also hanging over the market as a factor which could generate more purchasing, Ammermann said.
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