Chicago corn hits highest since 2012 on tight supply fears

U.S. grains futures gained in early Asian trade on Monday, with corn hitting its highest level in nearly a decade, supported by tightening global supplies and a production outlook clouded by the Russia-Ukraine war.

The most-active corn contract on the Chicago Board of Treade (CBOT) climbed to as high as $7.90 a bushel, the strongest level since September 2012, from last Thursday’s close of $7.83-3/4. U.S. markets were closed on Good Friday.

CBOT wheat was up 1.4% at $11.20 a bushel by 0141 GMT, while CBOT soybeans gained 0.6% to $16.91-3/4 a bushel.

Last week corn was also supported amid fears of planting delays due to an unfavourable weather in the U.S. Midwest. The U.S. Department of Agriculture said the corn crop was 2% seeded as of April 10, behind the five-year average of 3%.

Argentinian truckers agreed on Thursday night to call off a strike that had paralyzed grains transport in the world’s top shipper of soy products and no. 2 supplier of corn.

Worries about the crisis in Ukraine, along with drought in the U.S. Plains winter wheat belt, have also underpinned wheat prices this year.

However, Strategie Grains on Thursday lowered its forecast for European Union soft wheat exports this season, with the consultancy’s monthly cereals report citing significant shipments from Russia despite its invasion of Ukraine.

The U.S. soybean crush rose in March to the highest level on record for the third month of the year, while stocks of soybean oil fell to the lowest since November, according to National Oilseed Processors Association data released on Friday.

Zawya

Tags: corn, Production, wheat, U.S., CBOT, contract, grains futures, global supplies