US corn rose more than 1 percent on Wednesday, notching gains for the eighth straight trading session and hitting a six-week high, as dry weather trimmed crop prospects in Argentina, the world's No.
2 corn exporter after the United States.
Wheat also rose for the eighth consecutive session, hitting a seven-week high on short-covering and spillover support from corn.
Soyabeans, which had risen to a six-week high, declined on profit-taking after eight sessions of gains.
A rising dollar and tumbling equities helped create an unsettled trading atmosphere and limited buying interest in wheat, corn and soyabean futures.CBOT corn for March delivery was up 1-1/4 cents per bushel at $6.34-1/2, March wheat was up 2 at $6.46-3/4 and January delivery soyabeans were down 9 cents at $11.90-3/4.
"The most concern in Argentina is for corn because it will be pollinating through the first two weeks of January, while bean yields will be determined in February," said Rich Nelson, director of research for Allendale Inc.
There is still time for rains to revive soyabean production but there is not much rain in the forecasts.
Argentina's corn crop will be smaller than expected but will still set a record, South American analysts said on Wednesday.
An analyst for Agrobrokers consultancy in Rosario pegged production at 24.5 million tonnes, above last year's record 23.0 million but below the firm's earlier forecast for 26.5 million tonnes.
Widely followed crop scout Michael Cordonnier this week began trimming his crop estimates pegging Argentina's corn crop at 27.0 million tonnes.
And Commodity Weather Group issued a special report indicating Argentina's crop at 10 percent below the trendline yield of 6.79 tonnes/hectare if the drought continues into early January.
(1 hectare=2.47 acres).
"Early planted corn areas in northern and central parts of the belt are already estimated to be about two-thirds pollinating, and the lack of rainfall in most of Cordoba, much of Santa Fe, and north-western Buenos Aires over the next 10 days is likely to leave many key areas unfavourably dry," said CWG meteorologist Joel Widenor.
Pollinating or reproducing corn plants are extremely vulnerable to harm from hot and dry weather.
The US Department of Agriculture (USDA) in early December forecast Argentina's corn crop at 29.0 million tonnes.
USDA will issue updated crop data on Jan.12.
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