Corn prices near six-month high on strong demand; wheat rises
Chicago corn futures rose 0.2% to $4.54-3/4 a bushel, supported by strong U.S. export sales of 1.7 million metric tons. Wheat gained 0.4% due to concerns over Russian supply, while soybeans inched higher. Corn prices were bolstered by bargain-buying after a four-year low, while soybean futures faced pressure from favorable Brazilian production forecasts.
SINGAPORE, Dec 30 (Reuters) – Chicago corn futures gained further on Monday, after hitting six-month highs in the previous session, on strong demand for U.S. supplies and bargain-buying.
Wheat rose for a third consecutive session on worries over Russian supplies, while soybeans inched higher after closing lower in the last session.
The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.2% to $4.54-3/4 a bushel by 0359 GMT, having hit its highest since mid-June at $4.55 a bushel in the previous session.
Wheat gained 0.4% to $5.48-1/2 a bushel and soybeans added a quarter of a cent to $9.90 a bushel.
The corn market is drawing support from robust export demand. The U.S. Department of Agriculture reported export sales in the week to Dec. 19 were 1.7 million metric tons, topping a range of trade expectations for 1.0 million to 1.6 million tons.
Corn prices have an upside potential on bargain-buying as the market dropped to a four-year low in August. End users of the grain have since been taking advantage of the dip, booking purchases in case South American corn harvests falter.
Conditions for winter wheat crops will worsen in Russia’s Central and Volga areas in January as warmer-than-usual weather and excess moisture cause sprouts to keep growing during the winter, the state weather agency said on Saturday.
Soybean futures have faced pressure in recent weeks on optimism about soybean production in Brazil, the world’s top supplier.
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Friday and net sellers of soybean and soymeal futures, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Savio D’Souza)
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Source : LiveMint
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