Corn hits near one-month high on dry weather concerns

Reuters2021-06-07

CANBERRA, June 7 (Reuters) - U.S. corn futures rose as much as 3% on Monday, as adverse weather across a key U.S. growing region pushed prices to a near one-month high. Soybeans and wheat prices also jumped.

The most-active corn futures on the Chicago Board of Trade rose 2.5% to $6.99-1/2 a bushel by 0039 GMT, near the session high of $7.06-1/4 a bushel - the highest since May 13.

Corn fell 1.9% in the previous session.

Analysts said corn was drawing support from hot, dry weather across the U.S. Midwest, a major producing region in the world's largest exporter.

"The market will remain hypersensitive to these weather issues because feed grain supply is tight," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Global supply estimates for corn are already shrinking amid sustained dry weather in Brazil.

Private analytics firm IHS Markit Agribusiness last week lowered its estimate of Brazil's 2020/21 total corn crop to 88 million tonnes, down 5 million from its previous estimate, according to an IHS client note seen by Reuters.

Soybean futures were up 1.8% at $16.12-3/4 a bushel, near the session high of $16.23-1/2 a bushel - the highest since May 13.

Wheat futures were up 1.6% at $6.98-3/4 a bushel after closing up 1.7% in the previous session.

Warm June weather after widespread rain last month is helping European wheat crops recover from a chilly, dry start to spring, keeping the region on track for a rebound from last year's disappointing harvest, analysts and traders said.

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