CBOT corn surges on planting delays

28 May, 2019

Chicago Board of Trade (CBOT) corn futures rallied nearly 4 percent on Friday to a one-year high as waterlogged fields and forecasts for more rain across the US Midwest increased concerns that more of the crop may go unplanted this year. CBOT July corn ended 14-1/2 cents higher at $4.04-1/4 a bushel, the highest for a most-active contract since May 29, 2018. Buying accelerated as the contract broke through chart resistance at the $4-per-bushel mark, the first time the spot contract has topped that level in a year.
July futures were up 5.5% in the week, a second straight weekly advance after gaining almost 9% last week. Rainy weather that has delayed US corn planting is expected to continue across much of the Midwest for the next 15 days, keeping farmers from planting corn. The US Department of Agriculture (USDA) is due to release its weekly crop progress report on Tuesday as US markets will be closed on Monday for the Memorial Day holiday. The USDA on Friday confirmed private sales of 113,000 tonnes of US corn to Mexico for 2018/19 shipment.

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