By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, April 21 (Reuters) – Chicago corn prolonged a rally on Wednesday to set one other close to eight-year excessive as unfavourably chilly climate for U.S. planting and drought in a part of Brazil raised doubts about harvest prospects at a time of declining international availability.
Soybeans additionally remained agency, touching one other highest since mid-2014 as the danger of chilly climate hampering U.S. planting added to help from tight short-term provides in oilseed and vegetable oils.
Wheat additionally rose, drawing help from corn and from concern about chilly harm to some U.S. winter wheat.
Essentially the most-active corn contract on the Chicago Board of Commerce (CBOT) Cv1 was up 0.6% at $6.10 a bushel by 1131 GMT, after hitting its highest since June 2013 at $6.14-1/2 a bushel earlier within the session.
“I believe it comes all the way down to crop delays and uncertainty in a market already skinny on provides,” Michael Magdovitz, commodity analyst at Rabobank, mentioned of corn.
“In a season the place you want every part to go proper, it isn’t an excellent begin.”
Freezing circumstances in U.S. grain belts this week have raised concern about delays to corn planting and crop emergence, whereas restricted rain forecasts for southern Brazil have been creating doubts about present estimates of bumper corn manufacturing.
Corn could take a look at 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.
CBOT soybeans Sv1 have been up 0.1% at $14.59-1/2 a bushel, paring positive aspects after earlier climbing to their highest since June 2014 at $14.72-1/4.
CBOT wheat Wv1 gained 1.0% to $6.67-1/2 a bushel.
In an indication of tightening availability of corn and soy, China’s agriculture ministry printed tips on Wednesday for the discount of corn and soymeal in pig and poultry feed.
“There’s positively a longer-term underlying bullish story, though the rally on the again of U.S. climate has come too early,” mentioned Ole Houe, director of advisory companies at brokerage IKON Commodities in Sydney.
Tensions in associated vegetable oil and biodiesel markets added to the energy in soybeans. The CBOT front-month soybean oil contract BOc1 earlier struck a 10-year excessive at 59.66 cents per lb.
Costs at 1131 GMT
Final
Change
Pct Transfer
Finish 2020
Ytd Pct Transfer
CBOT wheat Wv1
667.50
6.25
0.95
640.50
4.22
CBOT corn Cv1
610.00
3.50
0.58
484.00
26.03
CBOT soy Sv1
1459.50
1.75
0.12
1311.00
11.33
Paris wheat Might BL2K1
229.50
6.50
2.91
210.50
9.03
Paris maize Jun EMAM1
227.00
1.00
0.44
198.75
14.21
Paris rape Might COMK1
554.00
6.50
1.19
412.00
34.47
WTI crude oil CLc1
61.76
-0.91
-1.45
48.52
27.29
Euro/dlr EUR=
1.20
0.00
-0.23
1.2100
-0.79
Most lively contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
Cv1https://tmsnrt.rs/3dzpjpy
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Modifying by Subhranshu Sahu, Alexander Smith and Steve Orlofsky)
(([email protected]; +33 1 49 49 52 18; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.