Corn hits 1-week high as rain delays US planting

SINGAPORE/PARIS: Chicago corn rose on Monday to its highest in a week after rains delayed planting in key parts of the US Midwest.

Wheat, on the other hand, was pressured by abundant world supplies and crop-friendly weather in key growing areas of the northern hemisphere.

The most-active corn contract on the Chicago Board Of Trade rose 0.5 percent to $3.63 by 1025 GMT, after hitting its highest since April 22 at $3.65 a bushel.

Wheat dropped 0.4 percent to $4.40-3/4 a bushel, while soybeans were up 0.1 percent at $8.67-3/4 a bushel.

Rain and even snow across the US Midwest threaten further corn planting delays.

"A series of strong storms over the next week are expected to bring significant precipitation throughout (the) majority of the corn belt which could prevent corn and soybean plantings over a critical period of time," brokerage Allendale said in a note.

Farmers faced with significant delays could be encouraged to switch some acres intended for corn to soybeans, which can be planted later.

Soybeans have been under pressure amid concerns about demand from top buyer China, which is locked in a trade row with the United States, and the spread of African swine fever in China's hog herd. Soy is a key foodstuff for hogs.

Brazil's 2018/19 soybean crop is poised to be the second-largest on record, a Reuters poll showed. According to the average of 12 forecasts, farmers will collect 115.46 million tonnes of the oilseed this season, below only last year's record output of 119.3 million tonnes.

The International Grains Council on Thursday nudged up its forecasts for world wheat production in the 2019/20 season, largely reflecting an improved outlook for Russia's crop.

Large speculators increased their net short position in CBOT corn futures in the week to April 23, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.