By Karl Plume
CHICAGO, Could 27 (Reuters) – U.S. corn futures surged greater than 6% on Thursday in a technical-buying and short-covering bounce from one-month lows and as robust demand for feed grains supported costs.
Soybeans adopted corn larger after hitting the bottom level in a month within the prior session.
Wheat futures soared on short-covering and technical shopping for and considerations concerning the not too long ago planted spring wheat crop resulting from a extreme drought within the northern Plains.
Chicago Board of Commerce July corn CN1 jumped by its 40-cent each day buying and selling restrict to $6.64-1/2 per bushel by 12:33 p.m. CDT (1733 GMT). July soybeans SN1 had been up 33 cents at $15.36-1/2 a bushel and CBOT July wheat WN1 added 27-3/four cents to $6.76-1/four a bushel.
Corn and soybeans gained regardless of largely favorable U.S. Midwest crop climate and forecasts for extra helpful rains within the coming days.
“We’re seeing some speculative shopping for coming into the market. The climate actually does not justify this rally in new-crop corn and soybeans, however the demand continues to be there,” stated Brian Hoops, president of U.S. brokerage Midwest Market Options.
Corn drew help from robust export demand, notably for new-crop shipments to China. The U.S. Division of Agriculture (USDA) on Thursday confirmed greater than 5.6 million tonnes in new-crop corn gross sales to China final week. EXP/CORN
The weekly USDA export gross sales report additionally didn’t present large-scale Chinese language cancellations of old-crop corn purchases, as has been rumored available in the market this week.
As well as, the USDA on Thursday morning confirmed personal gross sales of 152,400 tonnes of new-crop corn to undisclosed patrons by way of its each day reporting system.
(Further reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Modifying by Alexandra Hudson and Steve Orlofsky)
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