Corn Advances as Rains Delay U.S. Planting
Corn advanced on Tuesday following a report that showed that farmers were planting the grain at a slow pace due to excessive rains.
Corn futures for July delivery increased by 4.3 percent or 25.25 cents to $6.1925 a bushel on the Chicago Board of Trade.
The most active contract increased by 58 percent last year posting the highest gain of $6.2425 on May 2 boosted by demand for animal feed and biofuels.
The U.S. Department of Agriculture (USDA) said that 27 percent of the grain had been planted in the top 18 producing states by May 4, compared with the 59 percent that was planted in the past five years.
A survey conducted by USDA in March showed that U.S. corn farmers were to plant 8.1 percent less corn this year as much of the land is planted with soybeans to benefit from their high prices.
In Iowa, the biggest corn-producing state, 18 percent of the crop had been planted by May 4 compared with the 64 percent average for the same date in the past five years.
The USDA said that Illinois, the second largest corn producer, seeded 28 percent of the grain by May 4 compared with 76 percent in the past period, while Minnesota had planted 8 percent of the crop, down from 65 percent on average in then past five years.
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