By Tom Polansek
CHICAGO, Might 4 (Reuters) – U.S. corn futures on Tuesday topped $7 a bushel within the most-active contract for the primary time since 2013 on considerations about tightening international provides.
Surging costs have achieved little to curb strong demand for corn used to feed livestock and produce ethanol, opening the door for the market to increase features, analysts mentioned.
There was “no demand destruction” amid robust profitability for meat manufacturing, mentioned Greg Heckman, chief government officer for international grains dealer Bunge Ltd BG.N
Asian feed producers are switching to wheat from corn in animal rations, although Heckman mentioned elevated wheat feeding to livestock in China is momentary.
“We have good animal profitability and good demand proper now,” Heckman mentioned on an earnings name with analysts.
Probably the most actively traded corn contract on the Chicago Board of Commerce (CBOT) Cv1 was up 22 cents at $7.01-1/2 a bushel by 11:20 a.m. CDT (1620 GMT). The market earlier reached $7.03-1/Four a bushel, the best worth for a most-active contract since March 2013.
Most-active wheat futures Wv1 had been up 8-1/2 cents at $7.26-1/2 a bushel on the CBOT. Soybeans Sv1 jumped 18-1/2 cents to $15.42-1/2 a bushel, close to an eight-year excessive hit final week.
Features in corn helped pull up soybean and wheat costs, merchants mentioned.
Oilseed inventories are additionally tight, holding the soybean market supported within the face of concern over lowered vegetable oil demand in India resulting from a surge in coronavirus instances. POI/
In Brazil, climate forecasts confirmed little signal of rain aid for dry southern corn-growing areas, holding consideration on international provide tensions regardless of U.S. planting progress. Brazil’s second annual crop is seen as essential to boosting short-term availability forward of the U.S. harvest later within the 12 months.
“In Brazil, the dry climate continues to be predominant and maize crops are struggling,” consultancy Agritel mentioned.
(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore. Enhancing by Subhranshu Sahu, Mark Potter and Andrea Ricci)
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