Corn at 14-month high on dry Brazil weather, brisk exports

PARIS/SINGAPORE: Chicago corn futures rose to a 14-month high on Wednesday supported by strong US exports and dry conditions in Brazil that added to global supply concerns.

Soybeans were also higher, trading near a 2-1/2 year high, similarly buoyed by export demand and doubts over South American crop prospects.

Wheat was up for a sixth straight session, holding close to Tuesday's near six-year high, as worries about dry weather, notably in Russia, and steady international demand sustained buying interest.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.9% at $4.12-1/2 a bushel by 1213 GMT, after hitting its highest since August 2019 at $4.12-3/4.

Rains are expected in the coming week in Brazil and Argentina, but may be light in some Brazilian growing belts, forecasts showed.

"For the moment the market is more focused on issues around drought, but if rainfall picks up during the South American season that could change things," said Arthur Boy, an analyst at French corn farmers group AGPM.

Concern over crop weather in South America, as well as a drought-hit harvest in Ukraine, has coincided with strong US exports fuelled by Chinese purchases.

The US Agriculture Department (USDA) on Tuesday said private exporters reported sales of 132,000 tonnes of soybeans to unknown destinations.

It was the sixth day in a row that the USDA has reported a so-called flash sale of either corn or soybeans.

CBOT soybeans were up 0.9% at $10.73-3/4 a bushel.

Wheat was up 0.2% at $6.33-1/4 a bushel, a day after hitting $6.38-1/4, its highest since December 2014.

Some rain has reached parched southern Russian wheat belts in recent days, but forecasts showed little further moisture due for the rest of October as farmers try to complete sowing.

"As it is the largest exporter, Russian weather and the possibility of a lower export quota next season are major concerns," Rabobank said in a note.