Corn jumps 1.5% as USDA pegs planting behind forecast

CANBERRA: US corn futures rose 1.5% on Tuesday after the US Department of Agriculture (USDA) pegged planting progress behind market expectations, stoking concerns over global supply.

Wheat rose 1% while soybeans also climbed 1%.

The most-active corn futures on the Chicago Board Of Trade were up 1.5% at $6.62-1/2 a bushel by 0422 GMT, having closed 1.4% higher in the previous session shortly after prices hit an April 28 low of $6.33.

The USDA said US farmers had planted 80% of their intended corn acres, as of Sunday, up from 67% a week earlier and the five-year average of 68%. However, analysts polled by Reuters had expected a range of 79% to 88%.

Concerns about global supply shortfalls arose amid strong global demand. Meanwhile, the USDA planting progress report has been driving up gains, according to traders and analysts.

"Global supplies are tight, and the USDA report is fuelling that," said Phin Ziebll, agribusiness economist, National Australia Bank.

Private exporters reported the sale of 1.7 million tonnes of corn to China for delivery in the 2021/22 marketing year, the US Agriculture Department said. It was the fourth corn sale of more than 1 million tonnes to China this month.

The most-active wheat futures were up 1.2% at $7.08 a bushel, having closed down 1.1% on Monday.

The USDA rated 48% of the winter wheat crop in good-to-excellent condition, down 1 percentage point from the previous week. Analysts polled by Reuters, on average, expected the winter crop condition to improve by 1 percentage point.

The most-active soybean futures were up 0.5% at $15.95-1/4 a bushel, having closed flat in the previous session.

Soybean planting was 61% complete, as of Sunday, ahead of the average analysts' estimate of 60% and well above the five-year average of 37% planted.

US soy processors crushed fewer soybeans than expected in April, with the month's crush volume sinking to the second lowest in 19 months, data released by the National Oilseed Processors Association showed.

Soy processor downtime and tight stocks of the oilseed limited the crushing pace.