SINGAPORE: Chicago corn futures climbed in early Asian hours on Wednesday over supply concerns as worries about dry conditions in key portions of the U.S. Midwest prompted heavy buying.
Soybean and wheat futures were also headed for gains.
Corn futures were up 2.5% at $6.12-1/4 a bushel, as of 0153 GMT.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.5% at $13.50 a bushel, and wheat futures gained 1.6% to $7.06-3/4 a bushel.
The U.S. Department of Agriculture cut its corn and soy crop ratings more than expected on Tuesday, including steep drops in top-producing states Iowa and Illinois, as a deepening drought stressed crops in the heart of the Midwest farm belt.
United Nations Secretary-General Antonio Guterres called for an acceleration of Black Sea grain shipments from Ukrainian ports under a deal allowing safe wartime exports, a U.N. spokesperson said on Tuesday as Russia threatens to quit the pact next month.
Algeria’s state grains agency OAIC has bought milling wheat in an international tender, which closed on Monday with supplies expected to be sourced largely from Russia, European traders said in initial assessments.
Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) is seeking to buy a total of 92,529 metric tons of food-quality wheat from United States, Canada and Australia in a regular tender that will close on Thursday.
Commodity funds were net buyers of Chicago Board of Trade wheat and soybean futures contracts on Tuesday, traders said.
The funds were net sellers of CBOT corn, soymeal and soyoil futures.
Global stock indexes fell and the dollar inched up on Tuesday as investors weighed the U.S. interest rate outlook ahead of Federal Reserve Chair Jerome Powell’s congressional testimony.
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