SINGAPORE: Chicago corn gained more ground on Thursday as investor buying supported prices, which hit a one-month low this week, while the market is likely to focus on US planting for direction in the weeks ahead.
Corn, soybeans recover from 3-year lows; ample supply caps gains
Wheat and soybeans edged higher, although gains in the wheat market were limited by plentiful Russian supplies.
Fundamentals
The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.6% to $4.34-1/4 a bushel, as of 0013 GMT, having gained more than 1% in the last session.
Wheat rose 0.1% to $5.56-1/2 a bushel and soybeans climbed 0.2% to $11.84-1/4 a bushel.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Wednesday, traders said.
Traders are monitoring Midwestern weather ahead of corn planting that is due to ramp up over the coming weeks. While rain and snow in the central corn belt are expected to boost soil moisture reserves, there are forecasts of higher temperatures later this month.
The US Department of Agriculture on Monday rated the US winter wheat crop at its highest early spring level in five years, and crop-boosting rains are forecast for the southern US Plains wheat belt.
Hefty wheat exports from Russia, which consultancy SovEcon estimates set a March record, are weighing on global prices.
However, Russian authorities have halted grain exports on some ships belonging to Aston, one of the biggest local grain trading houses, two industry sources said, widening a quality probe which has already curbed the exports of another major trader.
A major disruption to Russian shipments can drive up global prices.
In news, the severe drought which has forced the Panama Canal, one of the world’s busiest trade passages, to limit daily crossings could impact global supply chains during a period of high demand, S&P Global said on Wednesday.
Argentine farm exports rose to $1.5 billion in March, a 22% increase from the same month last year, oilseed industry and grains export chamber CIARA-CEC said on Wednesday.
India’s rapeseed and mustard output is likely to rise 7% from last year to a record 12.09 million metric tons in 2024, helped mainly by a larger planting area, a leading industry body said on Wednesday.