HAMBURG: US corn futures rose on concern rain will make fields too wet for farmers to complete sowings, while cold and wet weather were stalling wheat development and seen lowering the chances of double-cropping soybeans after the wheat harvest.
Stalled by rain and late-season snow last week, US farmers have planted just 12 percent of their intended corn area, the slowest pace since 1984, the US Department of Agriculture (USDA) said.
"The corn and soybean markets are being supported today by concern about the weather forecasts in the United States and their impact on corn plantings," said Commerzbank analyst Carsten Fritsch. "The weather forecasts and the assessment of their impact are sometimes contradictory which is causing strength in the market because of uncertainty."
Chicago July corn futures rose 0.08 percent to $6.40-1/2 a bushel at 1048 GMT after rising 0.55 percent on Tuesday.
Chicago July wheat rose 0.7 percent to $7.09-1/2 a bushel and July soybeans rose 0.4 percent to $13.88-3/4 a bushel.
Analysts said old-crop grain and soybean prices were also supported by position-squaring ahead of the key USDA monthly global supply and demand report on Friday, while public holidays in parts of Europe on Wednesday reduced business volumes.
Some forecasters said drier weather in the US Midwest may help corn seeding work but delays past mid-May would encourage farmers to switch corn acreage to soybeans, despite soybean planting also falling well behind schedule.
"There is still concern about whether US farmers will be able to achieve their corn plantings in this year's time window," Fritsch said. "Delayed development of US wheat could also prevent double-cropping of soybeans after wheat which is supportive to soybean prices."
"But if US farmers manage to plant corn this would also mean they could sow less soybeans as an alternative to lost corn. Wheat is being supported both by continued worry about the condition of the US crop and about crops in other export regions such as the Black Sea and Canada."
More signs came on Wednesday of crop problems in leading wheat exporting countries, as Ukrainian analyst UkrAgroConsult cut its forecast of Ukraine's 2013 grain crop forecast due to lower than expected wheat output.
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