Corn rose to a maximum of five weeks

Corn rose to a maximum of five weeks after a private forecaster lowered his estimate for next year's planting in the U.S., the largest producer and exporter. Soybeans also advanced.

Informa Economics Inc. said corn farmers to plant 90.755 million acres, less than a November forecast of 93.055 million. Soybean planting is 77.565 million, compared to a record $ 77.714 million this year, the Memphis-based researcher said today in a report. Reports said that farmers can plant more acres of cotton in five years, after prices rose to a record.

"We are in a battle for acres and wants to build trade at a premium" to encourage more planting, said Mike Zuzolo, president of Global Commodity Google Analytics & Consulting in Lafayette, Indiana. "This is an issue not be resolved until the planting season, starting in Texas in February, Zuzolo said.

Corn futures for March delivery rose 9 cents, or 1.5 percent, to settle at $ 5.965 a bushel at 1:15 pm at the Chicago Board of Trade, capping a 3.9 percent gain for the week was moving towards the room. Earlier, the price reached $ 5.99, the highest since November 09.

Soybean futures for March delivery rose 10 cents, or 0.8 percent, to $ 13.105 a bushel in Chicago, 2.9 percent in the week.

South American crops

The price also increased speculation that bad weather can damage crops in Brazil and Argentina, the largest exporter after the U.S.

crop stress of hot, dry weather throughout Argentina will increase within two weeks from December 19, according to a report by the World Meteorological Inc. Southern Brazil will be drier and warmer, private forecaster said. Corn prices have risen 44 percent this year, and soybeans rose 25 percent.

"The market is worried about crop stress is already starting to reduce production in South America," said Mark Schultz, principal analyst at Northstar Commodity Investment Co. in Minneapolis. "The rains have been erratic this year, and crops are deteriorating."

Corn gained after the U.S. Congress yesterday approved a plan of 858 billion U.S. dollars of tax cuts that includes incentives to help buoy demand for fuel made from crops, said Schultz.

U.S. exit ethanol hit a record 939,000 barrels per day in the week ended December 3, Energy Department data show.

"The demand for ethanol will increase next year," said Schultz.

Corn is the largest U.S. crop, valued at 48.6 billion U.S. dollars in 2009, followed by soybeans at 31.8 billion U.S. dollars, government data.