SINGAPORE — Chicago corn futures extended gains on Wednesday to trade near a more than eight-year high hit in the previous session, as concerns over global supplies and strong demand underpinned prices.
Wheat slid while soybeans edged higher.
“The same story of tightening supply is driving the market,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “Forecasters are already making hefty cuts to their estimates of Brazil’s season 2020 production.”
Weather forecasts showed little sign of rain relief for Brazil’s dry southern corn-growing areas, keeping the focus on global supply woes despite U.S. planting progress.
Brazil’s second annual crop is seen as crucial to boosting short-term availability ahead of the U.S. harvest later in the year.
The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.1 to $6.97-3/4 a bushel as of 0107 GMT, on course for its fifth consecutive session of gains. On Tuesday, the market reached $7.04 a bushel, its highest level since March 2013.
Wheat lost 0.2% to $7.25 a bushel and soybeans rose 0.2% to $15.41-1/2 a bushel.
Brazilian soybean exports in May are likely to fall after setting a monthly record in April due to the absence of Chinese buyers, according to an agribusiness analyst and data from a maritime agent.
China is being more cautious after soybean prices in Chicago touched an eight-year high.
Argentina’s 2021/22 wheat crop is expected at 19 million tonnes, equal to the country’s record-setting harvest in the 2018/19 season, the Buenos Aires Grains Exchange said in a preliminary forecast on Tuesday.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Tuesday, traders said. Estimates for buying in corn were wide, ranging from 5,000 contracts to 40,000 contracts. (Reporting by Naveen Thukral; Editing by Rashmi Aich)