Corn and soybeans rose on speculation that cold, wet Midwest weather will slow the harvest and reduce production in the U.S., the world’s largest grower and exporter of both crops.

Temperatures below freezing this weekend occurred north of a line from Amarillo, Texas, to Kansas City, Kansas, and east to Toledo, Ohio, ending the growing season for immature plants, said Dave Tolleris, president of WxRisk.com in Richmond, Virginia. Harvesting across the U.S. will be delayed by wet weather in next two weeks, Tolleris said.

“The harvest rates are very slow,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today. If the harvest turns out smaller than expected, then the market “will refocus and reprice,” he said.

Corn for December delivery rose 9.5 cents, or 2.6 percent, to $3.7175 a bushel on the Chicago Board of Trade at 1:35 p.m. London time, after gaining Oct. 9 to $3.73, the highest since Aug. 3. The most-active contract advanced 8.6 percent last week, the most this year.

Soybeans for November delivery rallied 17 cents, or 1.8 percent, to $9.81 a bushel in Chicago. It earlier reached $9.8325, the highest since Sept. 1. The most-active futures gained 8.9 percent last week, the most this year.

The U.S. corn and soybean harvests are lagging behind the pace of recent years after rain delayed planting in May and below-normal temperatures in July and August slowed crop development, government data show.

Source/Full Story: Bloomberg.com
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