Aug. 21 (Bloomberg) -- Soybean futures rose to a two-month high and corn gained on concern that dry weather in the U.S. Midwest will reduce yields after rain delayed crop development. Wheat advanced.
Precipitation in the next 10 days will fall mostly in northern and eastern areas and probably won’t bring “notable relief” to the dry Midwest, Commodity Weather Group said in a report. Corn and soybeans are maturing more slowly than normal following planting delays and below-average temperatures, a U.S. Department of Agriculture report showed Aug. 19, leaving crops at risk for frost.
“Some rain is going to hit eastern Nebraska and northern Iowa, but we won’t have any blanket moisture that will cover the Corn Belt,” Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas, said in a telephone interview. “People are talking about reduced yields even if we have a normal frost.”
Soybean futures for November delivery gained 1 percent to settle at $13.04 a bushel at 1:15 p.m. on the Chicago Board of Trade, after reaching $13.19, the highest for a most-active contract since June 19.
Yields in Nebraska may be below the average in the previous three years because of drought, according to findings yesterday on the Pro Farmer Midwest Crop Tour.
Corn futures for December delivery rose 1.6 percent to $4.8325 a bushel in Chicago. The price has tumbled 31 percent this year amid forecasts for the biggest domestic harvest ever.
Wheat futures for December delivery climbed 0.5 percent to $6.4925 a bushel on the CBOT.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, USDA data show.
--Editors: Thomas Galatola, Steve Stroth