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Corn is approaching a maximum of eight years due to dryness in Brazil and slow planting in the US

Por Christopher Walljasper

CHICAGO, US, Apr 26 (Reuters) – Chicago corn futures rose to their highest level since June 2013 on Monday as concerns over supplies from South America boosted the market.

* The strength of corn pulled wheat and soybeans to eight-year highs.

* July corn, the most active contract on the Chicago Stock Exchange, raised the allowable limit to $ 6.575 per bushel.

* Soybeans for July gained 23.25 cents at $ 15.3925 per bushel after hitting $ 15.4475 per bushel, its highest since June 2013. Wheat added 27.25 cents to $ 7.3950 per bushel after reach $ 7.46 per bushel, its highest since February 2013.

* Dryness in Brazil threatens developing second-crop maize, as late planting has left the crop vulnerable to damage from lack of water.

* “It’s the beginning of the dry season,” said Karl Setzer, commodity risk analyst at Agrivisor. “If it doesn’t rain very soon it’s going to be worrying.”

* Slow planting in the US Midwest due to a cold snap added support as local supply declines.

* Analysts expect the US Department of Agriculture to report 17% of US corn acres planted through April 25 on Monday afternoon, with 8% soybeans planted.

* Corn exports for the week ending April 22 were 1.9 million tonnes, according to the USDA, beating analyst estimates.

* “There is no corn or soybeans, by and large, in the interior of the United States,” said Joe Davis, director of commodity sales at Futures International.

* Soybeans received support because Argentina considers an increase in export taxes on grains to control domestic food prices.

* Exporters sold 120,000 tons of soy from the new crop for delivery to unknown destinations, according to the USDA, although the old crop placement has cooled off. Exporters had moved 233,911 tons of soybeans last week, within analysts’ expectations.

* Wheat is supported by freezing weather in the United States and concerns that acres will shift to more profitable corn or soybeans.

* “Last week there was talk of frost, but there is a month to go to see the real damage, if there is any,” Davis said.

* Wheat exports exceeded expectations, with 564,047 tons inspected in the week ended April 22.

(Reporting by Christopher Walljasper; additional reporting by Naveen Thukral and Michael Hogan; Edited in Spanish by Javier López de Lérida)

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