CHICAGO: US corn futures climbed to their highest in nearly eight years on Tuesday and soyabean futures neared a seven-year high as tightening supplies supported cash markets and attracted speculative buying, analysts said.
Worries about dry conditions curbing corn yields in Brazil and cold weather slowing germination of the 2021 US crop added support.
Wheat futures followed the firm trend as freezing temperatures in the US Plains this week threatened developing winter wheat crops.
As of 12:32 p.m. CDT (1732 GMT), Chicago Board of Trade May corn was up 16-1/2 cents at $6.08-1/2 per bushel after reaching $6.11-3/4, the highest price on a continuous chart of the most-active contract since June 2013.
CBOT July soyabeans were up 23-1/2 cents at $14.60 a bushel after rising to $14.71-1/2, the highest for a most-active soyabean contract since June 2014. CBOT July wheat was up 10-1/2 cents at $6.64-1/4 a bushel.
Life-of-contract highs were set in corn, soyabean and wheat, as well as several soyabean oil contracts.
Nearby futures posted the biggest advances in each of those markets, gaining against back months on signs of dwindling US stockpiles.
“That is certainly showing up in the cash markets, with the basis that continue to ratchet higher as a sign of tightening supply. You see it in the spreads today,” said Terry Linn, analyst with Linn & Associates.
Speculative buying by commodity funds was likely a factor as well, Linn said, noting that the CME Group, operator of the CBOT, expanded position limits in grain futures last month.
Traders have sold two shipments of Ukrainian rapeseed this month to Canadian buyers, a highly unusual trade, market sources said.
Brazil suspended import duties on soya, corn, soyabean meal and soyabean oil until the end of the year, the Agriculture Ministry said on Monday, as the country seeks to slow inflation.
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