Corn rises to highest level since June 2013 on Chinese demand

CANBERRA: US corn futures rose more than 1% to hit a six-year high on Monday, driven up by strong Chinese demand.

Soybeans also gained drawing support from concerns over adverse weather in South America, while wheat also rose.

The most active corn futures on the Chicago Board Of Trade Cv1 were up 1.4% at $5.54-1/2 a bushel by 0257 GMT, near the session high of $5.55-3/4 a bushel, the highest since June 2013. Corn gained 2.3% in the previous session.

Analysts said corn is continuing to draw strong support from Chinese demand, the latest sign of which came last week when the US Department of Agriculture confirmed private sales of 2.108 million tonnes of US corn to China.

"That sale means China will likely have lifted 6 million tonnes of corn from the US last week a bit over 1.5% of the 2020 US crop," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

It was the second-biggest daily corn sales announcement on record, eclipsed only by a deal for 3.72 million tonnes to the Soviet Union in 1991.

The most active soybean futures were up 0.8% to $13.81 a bushel, having firmed 1.2% on Friday.

Analysts said soybeans have drawn support from concerns about potential damage from rains across Brazil.

The most active wheat futures were up 0.8% at $6.68-1/4 a bushel, having closed up 2.5% on Friday.

The strength in wheat came amid tightening global supplies, though Russia may produce more than previously expected.

Agriculture consultancy Sovecon raised its forecast for Russia's 2020/21 wheat exports by 1.6 million tonnes, to 37.9 million tonnes, citing current high export levels.