GRAINS-Corn extends gains, set for biggest weekly jump in 7 months

29 May 2020, 03:44

* Corn firms for fifth straight session

* Wheat poised to finish the week up 1%

* Soybeans on course for biggest weekly gain in two months

By Colin Packham

SYDNEY, May 29 (Reuters) - U.S. corn futures rose for a fifth consecutive session on Friday as concerns about adverse weather impacting crops and signs of increased demand pushed the grain towards its biggest weekly gain in more than seven months.

Wheat was little changed but was on course to finish the week up 1%, while soybeans were poised to record their biggest weekly gain in two months.

The most active corn futures on the Chicago Board Of Trade were up 0.5% at $3.29 a bushel after rallying more than 2% on Thursday, when prices hit their highest since April 23 at $3.30-3/4 a bushel.

Corn futures were up more than 3% for the week, heading for their biggest weekly gain since Oct. 4, 2019.

"Corn consumption is on the rise as seen by the ethanol data," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

U.S. government data published on Thursday showed a fourth straight weekly increase in ethanol production and a drop in ethanol stocks to the lowest since January.

Analysts also noted the threat of hot, dry weather that is expected across the U.S. Midwest.

The most active wheat futures little changed at $5.14-3/4 a bushel after closing up 2%.

Wheat is up 1% for the week, the second straight weekly gain.

The most active soybean futures were down 0.4% at $8.44 a bushel after closing down 0.6% in the previous session.

Soybeans were up 13% for the week, their biggest weekly gain since late March.

Gains were checked, however, amid rising U.S.-China tensions and China's continued buying of Brazilian soy for shipment during the traditional U.S. export season weighed on soybeans

(Reporting by Colin Packham; Editing by Ramakrishnan M.)