By Naveen Thukral
SINGAPORE, Jan 3 (Reuters) – Chicago corn and soybean futures rose on Monday with both markets starting 2022 on a positive note, climbing more than 1% as strong demand underpinned prices.
Wheat gained ground, supported by shrinking world supplies.
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 1.2% at $6.00-1/4 a bushel, as of 0158 GMT, soybeans added 1.3% to $13.56-1/4 a bushel and wheat Wv1 gained 0.8% at $7.76-3/4 a bushel.
Corn futures, which climbed more than 20% in 2021, paced the grain markets, supported by increased feed usage by livestock as well as a rebound in the ethanol sector as drivers returned to the roads due to the easing COVID-19 restrictions. The corn market has risen for four years in a row.
Wheat futures rose 20.3% last year, the market’s fifth straight yearly gain and its biggest since 2010. Crop problems in Australia and worries about export curbs in Russia supported the wheat market through 2021.
Ukraine has exported 32.2 million tonnes of grain in the first half of the 2021/22 July-June season, up 23.5% from the same stage a season earlier, agriculture ministry data showed on Friday.
Commodity prices from energy and metals to agricultural products rebounded sharply in 2021, with power fuels leading the rally, driven by tight supplies and a strong economic recovery as COVID-19 vaccinations staved off widespread lockdowns.
Commodity funds were net sellers of CBOT wheat, soymeal and corn futures contracts on Friday and net buyers of soybean and soyoil futures, traders said. COMFUND/CBT
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
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