Futures for corn and soybean soar due to excess rain

Corn and Soybean

Futures contracts for corn and soybeans went up as more rain spawned worries about mounting disruption to crops in the United States.

Rain across much of the Midwest and Mississippi Delta region halted the planting of corn and soybean over the weekend. Moisture in the plains sparked concerns about the decreasing quality of the crops.

"U.S. growing conditions are beginning to get the market's deserved attention," St. Louis trader and publisher of a commodities-market newsletter, Ken Morrison Wrote in a note. The crop recently planted in much if the Corn Belt "may be bearing the brunt of the saturated fields and colder than ideal soil temps."

More corn than usual may have to be planted again possibly limiting yield said vice president of research at R.J. O’Brien Richard Feltes.

"It would appear this is more than just a blip on the radar," Richard Feltes said in a note. "We could lose enough acres of corn to be significant."

Fieldwork was interrupted this weekend by rain and according to the Commodity Weather Group it will continue to do so in parts of the southern Midwest and northern Delta for the next two weeks. Analysts expect the U.S. Department of Agriculture to reveal a small drop in wheat crop in good or excellent condition.

Futures contracts of corn for delivery in June went up 0.7 percent to $3.75 per bushel at the Chicago Board of Trade, while soybeans went up 0.4 percent to $9.56 a bushel.

Wheat closed lower, dropping 0.2 percent at $4.34 per bushel.

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