US corn futures jumped on Friday, aiming to end the year on a high note as concerns increased about hot, dry weather hurting output in Argentina, the second largest exporter of the grain. Corn for March delivery was up 9 cents, or 1.4 percent, at $6.47 a bushel at the Chicago Board of Trade. Soyabean and wheat futures also were stronger.
Weekly export sales of US soyabeans were 663,200 tonnes, above expectations for 300,000 tonnes to 600,000 tonnes. Wheat export demand also was stronger than expected. Sales of 431,200 tonnes were a four-week high, topping expectations for 200,000 to 350,000 tonnes.
Soyabeans for January delivery jumped 16 cents, or 1.4 percent, to $12.03-1/2 a bushel. Wheat for March delivery climbed 8 cents, or 1.2 percent, to $6.53-1/4 per bushel. Driving prices higher were forecasts for rising temperatures to add stress to crops in Argentina that have gone weeks without significant rains.
Traders are focusing on Argentina's corn crop as it is approaching its key development period of pollination. They said extended dryness could reduce Argentina's production and shift export demand to the United States, the world's leading corn exporter. The United States does not have a lot of extra corn on hand, with supplies as of August 31 projected to drop to their lowest level since the mid 1990s, according to the US Department of Agriculture. Yet, export sales last week showed a decline in demand.
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