Chicago corn hits decade-high on tightening global supply
CBOT wheat Wv1 climbed 2% to $11.18-3/4 a bushel, while CBOT soybeans Sv1 gained 0.5% to $16.90-1/2 a bushel.
“The situation in Russia and Ukraine is (a) stalemate,” analysts at Zhongzhou Futures in China said in a note. “Supply concerns still exist (while) corn prices fluctuate at high levels.”
Large speculators raised their net long position in CBOT corn futures in the week to April 12, regulatory data released on Friday showed.
Around 1.25 million tonnes of grains and oilseeds are still on commercial vessels blocked in Ukrainian seaports due to Russia’s invasion and part of the cargo may deteriorate in the near future, Ukraine’s farm minister was quoted as saying on Friday.
The nearly two-month-old war between two of the world’s major producers and exporters of grains has disrupted shipments from the key Black Sea region.
Last week, Russian President Vladimir Putin warned peace talks were at a dead end, signalling that the war would grind on.
Fears of planting delays due to an unfavourable weather in the U.S. Midwest have also provided support to corn prices. The U.S. Department of Agriculture said the corn crop was 2% seeded as of April 10, behind the five-year average of 3%.
Traders kept a close watch on grains demand in top importer China, where widespread COVID-19 lockdowns have taken a toll on the economy already weakened by external trade headwinds, with further downside risks looming.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Rashmi Aich and Amy Caren Daniel)