Corn futures climb to 1-week high on U.S. crop fears

Forexpros - Corn futures were up for a second day on Wednesday, climbing to a one-week high as adverse weather conditions in key U.S. corn-growing regions threatened crops that were already deteriorating.
On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD6.8838 a bushel during European morning trade, rallying 2.92%. 
It earlier rose to USD6.9088 a bushel, the highest price since June 22.
The U.S. National Weather Service said on Tuesday that it expected warmer-than-normal temperatures and below-average rainfall across the Mississippi Delta states during the next ten days, potentially threatening yields and reducing the quality of the harvest.
The U.S. Department of Agriculture said in its weekly crop progress report earlier in the week that approximately 9% of U.S. corn crops were rated in 'poor' to 'very poor' condition last week, up from 7% in the preceding week.
Nearly 68% of the crop was rated 'good' to 'excellent', down from 70% a week earlier and below the five-year average of 73% for this time of year.
The U.S. is both the world's largest corn producing nation and the world's largest exporter of the grain.
Meanwhile, optimism that Greek lawmakers will vote in favor of harsh austerity measures needed to avoid a sovereign debt default later in the day saw the U.S. dollar weaken. 
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2% to trade at 75.30, after earlier falling to 75.22, the lowest since June 22.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere, wheat for September delivery jumped 1.4% to trade USD6.8188 a bushel, while soybeans for August delivery gained 0.95% to trade at USD13.3463 a bushel during European morning trade.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
Read more: http://community.nasdaq.com/News/2011-06/corn-futures-climb-to-1week-high-on-us-crop-fears.aspx?storyid=83006#ixzz1QfZSoa9f