Bloomberg Corn, Wheat Rise on Concern U.S. Crops May Be Hurt by Weather

May 7 (Bloomberg) -- Corn and wheat futures rose in Chicago on speculation that freezing weather will harm crops in the U.S., the biggest exporter of both grains.

Freezing or near-freezing temperatures over the weekend may stunt Midwest corn that has begun to emerge and damage wheat that is maturing from northern Kansas to southern Michigan, said Allen Motew, a meteorologist at QT Weather in Chicago. Above- normal rains next week across most of the eastern U.S. will delay final corn planting after a record start, Motew said.

“The cold weekend forecast is encouraging people to cut short positions,” said Tim Hannagan, a market analyst for PFG Best Inc. in Chicago. “People are buying on the price breaks because we have gotten past the peak in the bearish supply news.”

Corn futures for July delivery rose 0.75 cent, or 0.2 percent, to $3.72 a bushel on the Chicago Board of Trade, erasing an earlier loss of 1.1 percent. The most-active contract fell 0.9 percent this week after gaining 3.9 percent last week on speculation the Greek credit crisis slow the global recovery and demand for the grain to produce food, animal feed and fuel.

Wheat futures for July delivery rose 2.25 cents, or 0.4 percent, to $5.105 a bushel, after earlier falling 1.9 percent. The price rose 1.5 percent this week, the fifth gain in six weeks. more...