Soybeans, Corn Advance on Concern Rain Will Reduce U.S. Yields

Jun 19, 2014 3:44 pm ET

June 19 (Bloomberg) -- Soybean futures jumped the most in four weeks and corn advanced on speculation that too much rain will reduce crop yields in the U.S., the world’s biggest grain and oilseed producer. Wheat climbed.

Parts of Iowa, Nebraska, South Dakota and Minnesota got as much as 10 inches (25 centimeters) of rain in the past 10 days, saturating soils and flooding some fields, Gail Martell, the president of Martell Crop Projections in Whitefish Bay, Wisconsin, said in a report. More precipitation in the next four days may expand the area facing adverse weather, she said.

“As much as 15 percent of the corn and soybean crop is struggling from too much water,” Jerry Gidel, the chief feed- grain analyst at Rice Dairy LLC in Chicago, said in a telephone interview. “People are realizing that a record crop cannot be guaranteed, and they are covering short positions.”

Soybean futures for November delivery climbed 1.2 percent to settle at $12.2725 a bushel at 1:15 p.m. on the Chicago Board of Trade, the the biggest gain for a most-active contract since May 21. Earlier, the price reached $12.2825, the highest since June 11.

Corn futures for December delivery rose 1.8 percent to $4.475 a bushel, the biggest gain since June 6. The grain on June 17 touched $4.3625, the lowest since Feb. 4.

Wheat futures for September delivery gained 1 percent to $6.025 a bushel, the biggest increase since June 6. Concern mounted that excessive rain will erode crop quality, Gidel said.

As of June 15, 63 percent of the Kansas winter-wheat crop was rated in poor or very poor condition, USDA data showed.

Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, government data show.