October 13, 2014 / 4:31 PM / 5 years ago

CORRECTED-GRAINS-Corn posts 2nd-biggest gain of 2014 as U.S. harvest slows

(Corrects headline and 1st paragraph to say Monday's gain was
second-largest of 2014, not largest)
    * Front-month corn climbs 3.6 percent, most since Jan. 10
    * Soy rises on slow farmer sales, talk of variable yields
    * Wheat follows firm trend; dollar's setback lends support
    * Federal holiday delays weekly USDA reports until Tuesday

    By Julie Ingwersen
    CHICAGO, Oct 13 (Reuters) - U.S. corn futures rose 3.6
percent on Monday, the second-biggest single-day jump of 2014,
as rains in the Midwest interrupted the harvest and slowed the
arrival of a record-large crop into marketing channels, traders
said.
    Soybeans and wheat followed corn's lead, with a weaker
dollar supporting grains, making them more attractive to those
holding other currencies. 
    "Rains should be widespread and heavy across all but far
northwestern portions of the Midwest today and tomorrow, which
will stall corn and soybean harvesting," MDA Weather Services
said Monday in a daily note.    
    The scope of the rally surprised some because it came on
Columbus Day, a U.S. government holiday when many traders are
away from their desks. Due to the holiday, the U.S. Department
of Agriculture's weekly export inspections and crop progress
reports were delayed until Tuesday.
    At the Chicago Board of Trade, December corn settled
up 12 cents, or 3.6 percent, at $3.46 per bushel - the biggest
rise for front-month corn since Jan. 10.
    November soybeans finished up 22-3/4 cents, or 2.5
percent, at $9.45-1/4 per bushel. Soybean futures traded in
larger volume than corn, which is typically the biggest grain
market.
    "The fact we have not had much hedge pressure, with the
harvest slowing, is part of the equation. (And) we've had some
end-user pricing," said Rich Feltes, vice president of research
for R.J. O'Brien.
    Others said soybean yields from the western Midwest were not
as consistently high as those reported from southern and eastern
portions.
    Traders were still digesting the USDA's monthly
supply/demand reports from Friday, which included upward
revisions to already record-high corn and soybean forecasts. 
    USDA pegged the 2014-15 corn crop at 14.475 billion bushels,
up from 14.395 billion in September, although below the average
trade estimate of 14.506 billion bushels in a Reuters poll.
  
    For soybeans, the USDA estimated the U.S. crop at a record
3.927 billion bushels.
    Analysts eyed weather in Brazil's soy belt, where farmers
are planting amid stressful dry conditions. However, some
forecasts predicted beneficial rains next week.
    CBOT December wheat settled up 6-3/4 cents at
$5.05-1/4 per bushel. Along with spillover strength from corn,
wheat rose on follow-through buying from Friday after USDA cut
its 2014-15 world wheat ending stocks forecast to 192.6 million
tonnes.
    Gains were limited by weekend rains in the U.S. Plains that
will help recharge soil moisture for the newly planted winter
wheat crop.
    
 Prices at 1459 CDT (1959 GMT):
                              LAST      NET    PCT 
 
                                        CHG    CHG 
 
 CBOT corn                  346.00    12.00    3.6 
 CBOT soy                   945.25    22.75    2.5 
 CBOT meal                  317.90     6.90    2.2 
 CBOT soyoil                 33.04     0.60    1.9 
 CBOT wheat                 505.25     6.75    1.4 
 
 (Additional reporting by Gus Trompiz in Paris and Colin Packham
in Sydney.; Editing by Himani Sarkar,; Keiron Henderson and
Matthew Lewis)
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