Corn rises as farmers leave more land unplanted

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Associated Press

Posted on August 15, 2013 at 2:01 PM

Updated Thursday, Aug 15 at 10:00 PM

NEW YORK (AP) — Corn rose the most in more than a month after the government reported that farmers left a large amount of land unplanted, which could lead to lower supplies.

The government's crop acreage data released Thursday showed that 3.4 million acres of land intended for corn were left unplanted. That was more than traders had expected and reduced the outlook for this year's crop, said Mike Zuzulo, president of Global Commodities Analytics and Consulting.

The price of corn also got a lift after the government reported good export demand. Forecasts for dry weather in the growing region helped the price as well.

Corn prices, which have been falling all summer on expectations of a record harvest, dropped to a three-year low this week. Traders are focusing on weather forecasts.

"Weather news is a lot more important now because it could further cut the supply in corn," said Zuzolo.

Corn for December delivery rose 17 cents, or 3.7 percent, to $4.72 a bushel, its biggest increase since July 9.

Wheat and soybeans also rose.

December wheat climbed 6.75 cents, or 1.1 percent, to $6.50 a bushel. Soybeans for delivery in November gained 26.5 cents, or 2.1 percent, to $12.66 a bushel.

Precious metals continued their recent recovery. Silver rose for a six day and gold climbed close to its highest in three weeks.

Gold for December delivery rose $27.50, or 1.2 percent, to $1,360.90 an ounce. Silver for the same month climbed $1.15 an ounce, or 5.3 percent, to $22.94 an ounce.

Palladium for September rose $16.50, or 2.2 percent, to $756.85 an ounce. Platinum for October rose $27.10, or 1.8 percent, to $1,532.30 an ounce.

September copper dropped a fraction of a cent to $3.34 a pound.

In energy trading, the price of oil rose 48 cents, or 0.4 percent, to $107.33 a barrel as the escalating violence in Egypt was seen as threatening stability in the Middle East, and U.S. crude supplies fell in a possible sign of stronger demand.

In other energy trading, heating oil rose 2.5 cents to close at $3.07 a gallon. Wholesale gasoline was unchanged at $2.98 a gallon. Natural gas rose 8 cents to $3.42 per 1,000 cubic feet.

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