CBOT corn ends sharply higher on Brazil dryness, supply fears
- So far, high prices have done little to curb US demand for corn to feed livestock or produce ethanol, analysts said.
CHICAGO: Chicago Board of Trade corn futures ended sharply higher on Tuesday after the most-active contract exceeded $7 a bushel for the first time since 2013.
Traders continue to focus on unfavorable dryness in Brazil, with some expecting that crop losses could shift more export demand to the United States.
Brazil's corn exports are expected to drop to zero in May from 29,991 tonnes in April, according to Anec, a Brazilian group representing grain exporters like Cargill and Bunge.
CBOT corn is supported by persistent fears that global supplies will remain tight until the autumn US harvest.
US farmers are not rushing to sell crops from previous harvests as they actively plant corn across the Midwest, traders said.
So far, high prices have done little to curb US demand for corn to feed livestock or produce ethanol, analysts said.
CBOT benchmark July corn settled up 17-1/4 cents at $6.96-3/4 per bushel.
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