By Julie Ingwersen
CHICAGO, April 21 (Reuters) – U.S. corn and soybean futures climbed to multi-year highs on Wednesday, supported by agency money markets as old-crop provides dwindle and climate points threaten prospects for the 2021 harvests, analysts mentioned.
Wheat futures additionally rose, drawing extra help from frosty temperatures within the Plains and Midwest.
Chicago Board of Commerce Could corn CK1 settled up 19 cents at $6.25-1/2 per bushel after reaching $6.28-1/2, the very best on a steady chart of the most-active contract Cv1 since June 2013.
Benchmark CBOT July soybeans SN1 ended up 21-3/Four cents at $14.79-1/2 a bushel, whereas the spot contract Sc1 reached $14.99-3/4, nearing $15 for the primary time since June 2014.
CBOT July wheat WN1 settled up 13-3/Four cents at $6.75 a bushel.
Close by contracts led the features in corn and soybeans as merchants scrambled to exit quick, or bought, positions in Could futures contracts forward of the primary discover day for deliveries, on April 30. Merchants count on few deliveries in opposition to Could corn CK1 and soy SK1 futures given agency home money markets, which point out tight provides remaining from the 2021 harvest.
“The shorts are having issue getting out of the Could forward of first discover day. The farmer just isn’t promoting a lot,” mentioned Dan Cekander, president of DC Evaluation.
Worries about dry circumstances stressing Brazil’s second-crop corn added help, in addition to freezing temperatures this week throughout the U.S. midsection. The Commodity Climate Group mentioned temperatures have been chilly sufficient to trigger “restricted” harm to winter wheat in components of Kansas and Oklahoma.
The chilly might additionally gradual the germination of newly seeded corn. The U.S. Division of Agriculture mentioned the U.S. corn crop was 8% planted by Sunday.
“In a season the place you want every little thing to go proper, it is not a terrific begin,” mentioned Michael Magdovitz, commodity analyst at Rabobank.
Corn could check a resistance at $6.42-1/2 in a single or two weeks, a break above which might result in a acquire to $7.21-1/2, Wang Tao, a Reuters analyst for commodities technicals, mentioned.
In an indication of tightening world availability of corn and soy, China’s agriculture ministry revealed tips on Wednesday for the discount of corn and soymeal in pig and poultry feed.
Tensions in associated vegetable oil and biodiesel markets added to the power in soybeans. The CBOT front-month soybean oil contract BOc1 struck a 10-year excessive at 60.38 cents per lb.
Cv1https://tmsnrt.rs/3dzpjpy
(Reporting by Julie Ingwersen; Modifying by Kirsten Donovan and Peter Cooney)
((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters Messaging: julie.ingwersen.thomsonreuters.com@reuters.internet))
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