CHICAGO: Chicago Board of Trade corn futures hit their highest price since March 2013 on Monday on strong demand for limited US supplies and concerns over dry weather hurting output in Brazil.
The most-active July corn contract posted the biggest gains, while the neighbouring soyabean and wheat markets slumped.
Traders continue to focus on tight global corn supplies as many US farmers are working to plant crops for the autumn harvest, rather than selling crops held in storage bins.
“The tight supply situation is certainly not going to be any better by July as ethanol producers, livestock feeders and exporters fight to obtain cash corn,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
Chicago Board of Trade most-active corn futures were up 10-3/4 cents at $6.84 a bushel by 12:50 p.m. CST (1750 GMT), after earlier setting an eight-year high of $6.98.
Soyabeans fell 13-3/4 cents to $15.20-1/2 a bushel after touching 8-1/2-year highs last week. Wheat sagged 11-3/4 cents to $7.23 a bushel at the CBOT.
Grain traders are awaiting an update on US plantings from a weekly US Department of Agriculture crop progress report due at 3 p.m. CDT (2000 GMT). It is expected to show farmers sowed 44% of their intended corn acres as of Sunday, according to the average estimate in a Reuters survey of 12 analysts.
Analysts forecast the USDA’s report will show soyabean planting was 25% complete.
“The corn market continues to look for a price that will uncover adequate producer selling,” Pfitzenmaier said.
In Brazil, the 2020/2021 second corn crop is estimated at 72.7 million tonnes, compared to 77.65 million previously, according to broker StoneX.