Corn gains for 8th session as rains stall U.S. corn planting

Chicago corn futures rose for an eighth straight session on Wednesday as U.S. farmers are unlikely to finish planting this year following excessive rains, resulting in tighter world supplies.

Wheat gained ground after closing lower on Tuesday with short-covering by funds expected support prices.

The most-active corn contract on the Chicago Board of Trade had risen 0.3% to $3.95-1/4 a bushel by 0224 GMT, after hitting a one-year high on Tuesday.

Wheat added 0.2% to $4.79-3/4 a bushel and soybeans were up 0.6% at $8.27-1/4 a bushel.

“Weather forecasters now have the U.S. corn-planting window coming to an end with farmers struggling to plant,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “Combined with a big investor short, the market is galloping higher.”

The U.S. Department of Agriculture said a lower-than-expected 49% of the U.S. corn crop has been planted, the slowest pace on record, based on data going back to 1980. Soybeans were 19% planted, also short of market expectations.

The wheat market is being supported by short-covering by funds although ample world supplies are likely to keep a lid on the market.

Top exporters, led by Russia are forecast to harvest bumper crops in the coming months.

Soybean prices were pressured on expectations the USDA may soon announce a trade-war aid package for farmers that could boost soybean plantings and possibly further swell record-large stocks of the oilseed.

Commodity funds were net buyers of CBOT corn and wheat futures contracts on Tuesday and net sellers of soybeans, soymeal and soyoil, traders said.

Estimates for wheat ranged from funds buying a net 4,000 contracts to selling a net 2,000 contracts.

Grains prices at 0224 GMT

 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  479.75  1.00    +0.21%   +3.17%       449.06  79
 CBOT corn   395.25  1.00    +0.25%   +3.13%       367.57  82
 CBOT soy    827.25  5.25    +0.64%   +0.67%       858.98  50
 CBOT rice   11.29   -$0.02  -0.18%   +1.99%       $10.76  86
 WTI crude   62.61   -$0.52  -0.82%   -0.78%       $63.23  
 Currencies                                                
 Euro/dlr    $1.116  $0.001  +0.05%   -0.09%               
 USD/AUD     0.6882  0.001   +0.20%   -0.15%

Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential
Source: Reuters (Reporting by Naveen Thukral; editing by Richard Pullin)