CHICAGO: US corn and soyabean futures climbed to multi-year highs on Wednesday, supported by firm cash markets as old-crop supplies dwindle and weather issues threaten prospects for the 2021 harvests, analysts said.
Wheat futures also rose, drawing additional support from frosty temperatures in the Plains and Midwest.
By 1:12 p.m. CDT (1812 GMT), Chicago Board of Trade May corn was 19 cents higher at $6.25-1/2 per bushel after reaching $6.28-1/2, the highest on a continuous chart of the most-active contract since June 2013.
Benchmark CBOT July soyabeans were up 20 cents at $14.77-3/4 a bushel, while the spot contract reached $14.99-3/4, nearing $15 for the first time since June 2014.
CBOT July wheat was up 13-1/4 cents at $6.74-1/2 a bushel.
Nearby contracts led the gains in all three markets as traders scrambled to exit short, or sold, positions in May futures contracts ahead of the first notice day for deliveries, on April 30. Traders expect few deliveries against May corn and soya futures given firm domestic cash markets, which indicate tight supplies remaining from the 2021 harvest.
“The shorts are having difficulty getting out of the May ahead of first notice day. The farmer is not selling much,” said Dan Cekander, president of DC Analysis.
Corn may test a resistance at $6.42-1/2 in one or two weeks, a break above which could lead to a gain to $7.21-1/2, Wang Tao, a Reuters analyst for commodities technicals, said.
In a sign of tightening global availability of corn and soya, China’s agriculture ministry published guidelines on Wednesday for the reduction of corn and soyameal in pig and poultry feed.
Tensions in related vegetable oil and biodiesel markets added to the strength in soyabeans. The CBOT front-month soyabean oil contract struck a 10-year high at 60.38 cents per lb.