Corn prices rally to 3-year high frost slows US seeding.
Temperatures across the Corn Belt, mainly in the midwestern US, roughly covering western Indiana, Illinois, Iowa, Missouri, eastern Nebraska, and east Kansas, will experience well below average temperatures through this weekend.
CORN prices climbed to the highest since June 2016 today amid reports that US producers are delaying corn planting following a record wet spell across the country, with more rainy weather forecast to come. Today’s advance marks the 10th daily gain in the past 11 days as the commodity powers upwards from the near eight-month lows hit on May 13. The gains have reached more than 20% from the base.
The sudden U-turn in sentiment has seen speculative accounts turn net long for the first time since the week of February 26
The cold blast has likely delayed seeding across the Corn Belt as farmers wait for warmer temperatures. Planting corn in cooler climates is still possible, but colder soil can take corn kernels much longer to germinate and increases the risk of seedling death. The first places where unrest could happen due to higher food prices are in emerging market countries. In the meantime, soaring corn exports and prices are a blessing for US farmers who have had their farm incomes collapse in recent years.