CHICAGO: US corn futures climbed to their highest in five months on Thursday as news of a swine disease in Germany fueled expectations of increased export demand for US pork and rising demand for feed grains, traders said. Firm cash markets for corn ahead of the start of the Midwest harvest added support.
Wheat futures rose, rebounding after a five-session slide, while soyabeans edged lower after a 12-session advance. As of 12:34 p.m. CDT (1734 GMT), Chicago Board of Trade December corn was up 4 cents at $3.64-1/4 per bushel after reaching $3.66-3/4, its highest since March 27.
CBOT December wheat was up 4-3/4 cents at $5.48-1/2 a bushel while November soyabeans fell 1/2 cent at $9.78-1/4. Corn hit session highs after lean hog futures on the Chicago Mercantile Exchange surged their daily 3-cent limit on confirmation of a case of African swine fever in a wild boar in Germany, the European Union's top pork producer. The news spurred optimism that global buyers would turn to the United States for pork supplies.
South Korea said it was halting imports of German pork following the discovery, and German pork exports to China and Japan are likely to come to a halt, German meat industry association VDF said.
"People are thinking that is going to be supportive for (soyabean) meal and especially corn," said Terry Reilly, senior analyst with Futures International in Chicago, citing two key feedstuffs for hogs. Tight supplies of old-crop corn supported cash values.
"The nearby cash (market) is very firm. It's hard to originate corn until you get to harvest," said Dan Cekander, president of DC Analysis. Traders were also squaring positions ahead of key monthly supply/demand reports due Friday from the US Department of Agriculture. Analysts on average expect the government to lower its estimates of US 2020/21 corn and soyabean production.
Soyabean futures edged lower for the first time in 13 sessions as traders locked in profit after the oilseed climbed to its highest in more than two years following strong demand from China.
Comments
Comments are closed.