By Tom Polansek
CHICAGO, Could 6 (Reuters) – Chicago Board of Commerce corn futures prolonged a rally on Thursday above eight-year highs as dry climate threatened harvest yields in main exporter Brazil and saved the concentrate on ebbing world provides.
Soybeans approached an 8-1/2-year peak reached final week, buoyed by rallying vegetable oil costs, whereas wheat was little modified.
Corn crop losses resulting from dryness in Brazil may shift export demand to the USA, which is already grappling with tight inventories, analysts mentioned.
“We’re nonetheless very dry in Brazil,” mentioned Brian Hoops, president of U.S. brokerage Midwest Market Options. “That crop is in retreat.”
Essentially the most-active corn contract Cv1 was up 5-1/Four cents at $7.13-3/Four a bushel by 11:25 a.m. CDT (1625 GMT). It earlier touched the best value since March 2013 at $7.22-1/2.
December corn CZ1 that represents the following U.S. harvest was up 15-1/Four cents at $6.20 a bushel, after setting a contract excessive of $6.22-1/4.
CBOT wheat Wv1 was flat at $7.44-1/2 a bushel.
Essentially the most-active soybean contract Sv1 soared 24-1/2 cents to $15.66-3/Four a bushel. November soybeans SX1 that characterize the following harvest set a contract excessive and have been up 26-1/Four cents at $14.09.
Rising new-crop soy and corn costs mirrored the battle to incite U.S. farmers to extend plantings to replenish tight shares, analysts mentioned.
Brokers are starting to develop nervous that cool climate will gradual the emergence of lately planted corn.
“There’s some issues that this yr’s crop just isn’t off to one of many best begins ever,” Hoops mentioned.
A 13-year excessive for palm oil, in opposition to a backdrop of tight world edible oil provides, helped increase soybean futures, merchants mentioned. POI/
World meals costs elevated for an 11th consecutive month in April to a near-seven yr excessive, in response to the United Nations meals company.
“The sentiment is fairly bullish, not simply in corn however the whole grains complicated,” mentioned Phin Ziebell, agribusiness economist at Nationwide Australia Financial institution.
(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Modifying by Edmund Blair, Kirsten Donovan)
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