CHICAGO: US corn futures rallied to a 7-1/2 years peak on Monday on buying ahead of a monthly US government crop report that is expected to show supplies of the grain tightening amid robust demand.
Soyabean and wheat futures also advanced in anticipation of the US Department of Agriculture (USDA) report scheduled for release during the trading session on Tuesday.
Adverse weather in key crop production areas offered additional strength, along with a weaker US dollar and spillover support from higher crude oil and equities markets.
Analysts polled by Reuters expect the USDA to make further cuts to its end-of-season supply outlooks on Tuesday for corn, soyabeans and wheat, while also trimming its harvest views for Brazilian and Argentine corn and soya.
Wheat futures drew some additional support from potentially crop-damaging cold across the US wheat belt, while rains in parts of Brazil stoked concerns about delays in harvesting the soyabean crop and planting corn in its wake.
The USDA on Monday reported stronger-than-expected corn export inspections last week, while soyabean inspections were near the high end of trade forecasts.
Chicago Board of Trade (CBOT) March corn futures were up 16 cents at $5.64-1/2 a bushel at 12:52 p.m. CST (1852 GMT) after peaking at $5.65-3/4, the highest for a most-active contract since June 28, 2013.
March soyabeans gained 21 cents to $13.87-3/4 a bushel, while CBOT March wheat rose 13 cents to $6.54-1/4 a bushel.
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