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Markets

Corn climbs to 1-week high on U.S. planting delays; wheat firms

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Wheat rose on the back of gains in corn futures although prices were capped 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 1 percent to $3.64-3/4 by 0312 GMT, after hitting its highest since April 22 at $3.65 a bushel.

Wheat added 0.7 percent to $4.45-1/2 a bushel and soybeans were up 0.5 percent at $8.71-1/4 a bushel.

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

"There have been rains in the Midwest and more rains are expected," said a Singapore-based trader. "There are chances that farmers might not be able to finish planting."

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 feedstuff 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.

Copyright Reuters, 2019