Corn soars to one-year high as hot weather grips US Plains

SYDNEY: US corn futures rose more than 1.5 percent on Monday to hit a one-year high as forecasts for soaring temperatures raised fears of potential crop losses.

Soybeans rose as much 2 percent as fears of adverse weather pushed prices to a four-month high, while wheat rose more than 2 percent, rebounding from two straight daily losses.

The most active corn futures on the Chicago Board of Trade rose 1.7 percent to $4.10-1/2 a bushel by 0438 GMT, near the session high of $4.11-3/4 a bushel - the highest since June 2016. Corn closed up 0.5 percent on Friday.

Sizzling temperatures in the northern US Plains spring wheat belt will spread next week into parts of the western Midwest, threatening corn yield prospects as the crop enters its key pollination phase.

"Concerns about dryness in the western areas of the US Corn Belt continue to grain traction," said Hannah Janson, chief analyst, Profarmer.

"This crop is currently at the pollination stage, and this has heightened concerns about the effects that hot and dry weather could have on this crop."

Temperatures from Kansas through the Dakotas are expected to reach the mid-90s to mid-100s Fahrenheit, or 35 to 41 degrees Celsius, through next week.

Soybean futures rose 1.9 percent to $10.34-1/4 a bushel, near the session high of $10.37-1/4 a bushel, the highest since March 7.

Forecasts call for continued adverse weather for the next week, stressing crops.

The most active wheat futures rose 2.3 percent to $5.47-1/2 a bushel after closing down 0.7 percent in the previous session.

Forecasts for hot, dry weather continue drive fears of widespread production losses across key US producing regions, stocking expectations of cuts to high protein wheat output.