Chicago Board of Trade (CBOT) corn futures rose 1 percent early on Tuesday, the biggest one-day advance in a week, to a six-week peak on dwindling supplies of corn, slow farmer selling and firm cash basis markets. Active spot May corn futures broke above technical resistance at the 200-day moving average, reaching a session high of $7.28-3/4 per bushel, the highest for a spot contract since February 6.
"Corn is reflecting the tight cash situation and strong basis levels. I also think they're putting a little premium in ahead of the USDA report next week," McCambridge said. Tight supplies of US corn are expected to again be confirmed when the US Department of Agriculture (USDA) releases its quarterly stocks report at 11:00 am CDT (1600 GMT) on Thursday, March 28.
USDA also will release its prospective plantings of US crops on that day. In its March supply/demand report, the USDA projected the smallest supply of corn in 17 years at the end of summer in the United States, the world's largest supplier. CBOT May corn was up 8-1/2 cents per bushel at $7.28-1/2 per bushel, May wheat was up 9-1/4 at $7.22 and soyabeans for May delivery were down 2-3/4 cents per bushel at $14.06-3/4.