The capricious weather has stifled the current planting season across the U.S., bolstering soft commodities related exchange traded funds.
The Teucrium Corn Fund (NYSEArca: CORN) surged 6.7% Monday, jumping over its 50-day simple moving average. CORN has declined 11.4% year-to-date.
Corn futures increased 6.5%, the highest daily rise in 10 months, during afternoon trading Monday after the cold weather slowed planting in the U.S., the world’s top exporter of corn, report Jeff Wilson and Whitney Mcferron for Bloomberg.
Farmers sowed 4% of corn crops as of April 21, compared to the five-year average of 16% for this time of year.
According to forecaster T-Storm Weather, central U.S. will experience more planting delays due to rising rain fall.
“The weather is wetter, and little planting is likely to occur with most farmers still working to apply fertilizer and prepare fields for seeds,” Jim Gerlach, the president of A/C Trading Inc. said in the article. “The risk is that this weather doesn’t break and planting delays become more severe in May,” adding to greater risk of crop damage during the summer.
In a report, Planalystics calculates that U.S. wheat yields will diminish to 43 bushels an acre from 47.2 bushels year-over-year due to drought conditions and freezing temperatures three times this month across the central and southern Great Plains.