CHICAGO: Chicago Board of Trade corn futures set their highest price in more than eight-years on Wednesday as concerns over global supplies and strong demand fuelled strong gains.
Wheat and soyabeans also jumped on supply concerns.
In the corn market, the biggest gains were in the December contract, which represents the US crop that will be harvested this autumn, as farmers are focused on planting.
The corn market is “on mission to capture more acres” by using high prices to entice farmers to increase plantings, said Rich Feltes, head of market insights for broker RJ O’Brien.
The most-active corn contract on the CBOT was up 9-1/4 cents at $7.06 a bushel as of 12:55 p.m. CDT (1755 GMT). It earlier reached $7.08, the highest level since March 2013.
December corn was up 18 cents to a contract high of $5.98-1/2.
CBOT wheat climbed 15-1/4 cents to $7.42 a bushel, and soyabeans were up 3-3/4 cents at $15.42 a bushel.
The US Department of Agriculture reported that China cancelled purchases of 140,000 tonnes of US corn for delivery in the 2020/2021 marketing year, following the recent surge in prices.
Yet, the USDA also reported that exporters sold 184,100 tonnes of US corn to Mexico and a total of 147,320 tonnes to unknown buyers.
In Brazil, a rival corn producer and exporter, weather forecasts showed little sign of rain relief for Brazil’s dry southern crop-growing areas, analysts said. The unfavourable conditions kept the focus on global supply issues, despite planting progress in the United States.
Brazil’s second annual crop is seen as crucial to boosting short-term availability ahead of the US harvest later in the year.
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