Chicago corn extended a rally to approach a three-year high early on Thursday as forecasts of more rain in the US Midwest threatened to exacerbate planting delays that have put a question mark over this year's harvest. Soyabeans rose for a fourth consecutive session as the persistent rain in the Midwest grain belt raised concerns that later-planted soya would be hit too.
Wheat also rose for a fourth straight day, touching its highest in almost six months, as the market assessed potential rain damage to maturing US wheat, as well as persisting dryness in some Australian growing belts. The most-active corn contract on the Chicago Board of Trade was up 1.4% at $4.36 a bushel by 1209 GMT, having earlier risen to $4.37-3/4, just shy of a near three-year peak of $4.38 struck in late May.
Soyabeans added 0.4% to $8.81-1/2 a bushel, after closing 2.2% firmer on Wednesday. CBOT wheat ticked up 0.1% to $5.27 a bushel, after earlier climbing to its highest since December 19 at $5.31-3/4 a bushel. This week's rally in corn prices was fuelled by the US Department of Agriculture's (USDA) bigger than expected cut to its US corn yield projection in a monthly report on Tuesday. Weather forecasts for heavy rain in the week ahead in parts of the Midwest threatened to add to massive planting delays and poor conditions for crop development.
The USDA left its estimates for soyabean production and yields unchanged from May. Adjustments to the soyabean crop outlook can be expected in the USDA's July report, the agency's chief economist told Reuters on Wednesday. Supply concerns in wheat have also been fuelled by continuing drought in Australia. Dry weather will persist across Australia until at least the end of September, the country's weather bureau said on Thursday.
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