Chicago Board of Trade corn futures ended higher on Monday on technical buying and short-covering ahead of a US-China trade agreement due to be signed this week, traders said.
CBOT March corn settled up 3-3/4 cents at $3.89-1/2 per bushel after reaching $3.89-1/2, the contract's highest since January 3. Commodity funds hold a net short position in CBOT corn futures, leaving the market vulnerable to bouts of short-covering.
Chinese Vice Premier Liu He will visit Washington to sign the so-called Phase 1 trade accord with the United States, with a ceremony scheduled for Wednesday.
US Treasury Secretary Steven Mnuchin on Sunday reiterated Washington's position that China committed to increase purchases of US agricultural products to $40 billion to $50 billion annually. But a lack of detail on the accord has made some traders cautious.
The US Department of Agriculture reported export inspections of US corn in the latest week at 460,307 tonnes, toward the low end of a range of trade expectations for 450,000 to 650,000 tonnes.
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