Too much rain in the U.S. and not enough in Europe and Canada sparked the biggest weekly rally in wheat and corn prices in three years, this week.
Wheat futures jumped 15 percent in Chicago, entering a bull market, corn climbed 9.4 percent, and milling wheat rose 8.7 percent in Paris. The advances are the largest since 2012. Soybeans saw their biggest gain since October.
Downpours across the U.S. Midwest and Plains are eroding grain quality, while fields in France and Canada have been parched by heat and dry weather. The El Nino developing across the Pacific Ocean risks cutting Australia\\\'s wheat crop to the smallest in eight years, according to National Australia Bank Ltd.
Parts of the U.S. Midwest received three times more rain than usual this month, and Illinois is headed for the wettest June since before 1895, according to Chicago-based T-Storm Weather LLC. US winter wheat, corn and soybeans classified as good or excellent all fell 2 percentage points on June 21 from a week earlier.
Wheat futures for September delivery rose 5.6 percent to close at $5.68 a bushel at 1:15 p.m on 29 June on the Chicago Board of Trade. The price surged 22 percent from a closing low on 5 May, meeting the common definition of a bull market.
Corn futures for September delivery climbed 2.5 percent to $3.925 a bushel in Chicago. The price reached $3.97, the highest for a most-active contract since 31 March. This grain is headed for the biggest monthly gain since October.
Source: Monthly News Report on Grains, quoting the Helenic Shipping News 29.6.15.