US corn futures climbed to their highest level in more than two months on Tuesday as traders predicted that the US may cut its harvest estimate in a crop report due out on Friday. The US Department of Agriculture, in the monthly report, may reduce its estimates for the average corn yield and the number of acres that were planted in the spring, said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
Other analysts have predicted that the agency may lower its estimates for the number of acres of corn and soyabeans that will be harvested due to unfavourable weather. Traders are concerned about the size of the crops because grain prices have tumbled over the past year following massive harvests in 2014. Export demand has been weak because of stiff competition from other countries that also have large supplies.
Chicago Board of Trade December corn was up 1.2 percent at $3.98-1/4 a bushel by 10:32 am CDT (1532 GMT) after trading to the highest price for a front-month contract since July 24. The contract rose 1.1 percent on Monday. December wheat climbed 2 percent to $5.26 a bushel after trading to its highest since August 10. November soyabeans gained 1.1 percent to $8.93-3/4 a bushel. Helping push wheat futures higher were worries about dryness in the Black Sea region, a major exporter, and softness in the US dollar, which makes US wheat more competitive on the world market.
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