Corn rose the most since October as adverse weather threatens to delay planting in the U.S., the world’s largest grower and exporter.
Almost half the U.S. has an above-average risk of flooding through April, with some of the highest threats in corn-growing states including North Dakota, South Dakota and Minnesota, the National Oceanic and Atmospheric Administration said yesterday. Drought also may affect other areas, including fields from Colorado to North Carolina, the agency said.
“There is a significant risk for a delayed planting season,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana. “We may trade in a very wide range until we get a better idea about U.S. planted acreage and growing-season weather.”
Corn futures for May delivery rose 37 cents, or 5.7 percent, to close at $6.835 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Oct. 8. The price surged 11 percent in two days and is up 82 percent in the past year. The grain advanced 2.9 percent this week, the sixth gain in seven weeks.
U.S. exporters reported corn sales more than doubled in the week ended March 10 from a week earlier, the government said yesterday. It was the sixth time in seven weeks that sales topped 1 million metric tons. The country is the world’s biggest producer and shipper of corn.
“Export demand is unlikely to slow and should improve with growing world populations and rising incomes,” Gerlach said.
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, government figures show. The U.S. Department of Agriculture on March 31 will release a survey-based estimate of planted acreage for corn and other major crops.
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