Corn and soybean futures rose on Monday as more wet weather sparked concerns about mounting disruption to U.S. crops.
Rain across much of the Midwest and the Mississippi Delta region stalled corn and soybean planting over the weekend. Moisture in the Plains raised alarm bells about the declining quality of the wheat crop.
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"U.S. growing conditions are beginning to get the market's deserved attention," Ken Morrison, a St. Louis-based trader and publisher of a commodities-market newsletter, wrote in a note. The crop recently planted in much of the corn belt "may be bearing the brunt of the saturated fields and colder than ideal soil temps."
Richard Feltes, vice president of research at R.J. O'Brien, said more corn than usual might have to be replanted, potentially limiting yield.
"It would appear this is more than just a blip on the radar," Mr. Feltes said in a note. "We could lose enough acres of corn to be significant."
Analysts expect a U.S. Department of Agriculture report released at 4 p.m. EDT Monday to show farmers making progress in planting thanks to clear skies last week. But rain this weekend interrupted fieldwork, and the Commodity Weather Group says it will continue to do so in some parts of the southern Midwest and northern Delta for the next two weeks. Analysts expect the USDA to show a slight decline of wheat crop in good or excellent condition.
Broader money flow into commodities, as the dollar fell to its lowest point since the U.S. presidential election in November, have also supported the grain market. Crude oil futures advanced on Monday.
Corn futures for July delivery rose 0.7% to $3.75 a bushel at the Chicago Board of Trade, while soybeans rose 0.4% to $9.56 1/2 a bushel.
Wheat turned lower to close down 0.2% at $4.34 1/4 a bushel.
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(END) Dow Jones Newswires
May 22, 2017 15:09 ET (19:09 GMT)