US corn and soyabean futures climbed on Wednesday, with soyabeans posting a fresh five-month high and their biggest monthly gain in more than a year, bolstered by growing export demand and investment fund buying. Each contract held onto gains after trading in both positive and negative territory. Soyabeans rose for the eighth straight session and corn the sixth straight day. Wheat also ended firm, rising to their highest price in more than three weeks.
"The common theme is: Demand is good, not great, and it's been consistently good for a month now," said PFG Best analyst Tim Hannagan. Investment funds have increasingly bought into the market, buying the biggest amount of corn in a year on Tuesday, while grain importers have also stepped up purchases of US supplies amid shortfalls elsewhere in the world.
The US Department of Agriculture said that US exporters sold 285,000 tonnes of US soyabeans to China and 120,000 tonnes of optional origin corn to Mexico. The sales follow the second-largest sale ever last week of US soyabeans to China, which imports nearly two-thirds of the soya traded globally. Mexico, the No 2 buyer of US corn, has also boosted grain purchases after drought sapped its own domestic corn crop.
"The Chinese have done some business out through April out of the US this week, indicative of how competitive the US is at the moment and once again (underlining) how the South Americans will spare no opportunity to screw up their early season logistics," ABN Amro analyst Charlie Sernatinger said in a note to clients.
Soyabean futures rose more than 9 percent in February in the largest monthly gain since December 2010, while corn posted a monthly rise of about 2.5 percent and wheat ended the month flat in the third straight month without a decline. Soyabeans for March delivery on Wednesday finished 8-1/4 cents higher to $13.13-1/2 per bushel, the highest level since September 22. CBOT March corn rose 3 cents to $6.56-1/4 per bushel, highest since January 12, while CBOT March wheat gained 2 cents to $6.64-1/4 per bushel.