February 8, 2011
US corn futures hit 30-month high amid tightening supplies
US corn futures rose to a new 30-month high, after picking up on Monday (Feb 7), amid predictions that tightening global supplies would not be able to match up with China's rising demand.
On the Chicago Mercantile Exchange, corn futures for March delivery traded at US$6.82 a bushel during European afternoon trade, gaining 0.44%.
It earlier rose to US$6.82 a bushel, the highest price since July 11, 2008.
Chairman of the US Grains Council Terry Vinduska said while on a visit to China over the weekend that China's corn imports in 2011 could jump to a record-high 9 million tonnes.
That would be more than double the previous record of 4.3 million tonnes China imported in 1995, and higher than the 8.3 million tonnes the world's top importer, South Korea purchased in the 2009-10 marketing season.
Vinduska said, "Estimates given to us were that China is short 10 to 15 million tonnes in stocks and will need to purchase corn this year. We learned the government normally keeps stocks at 30% but they are currently a little over 5%."
In 2010, China sold grain from state warehouses in an effort to curb food prices, leading to a shortage in supplies.
Meanwhile, the USDA said in a statement on its website on Sunday (Feb 6) that US exporters sold 1.17 million tonnes of corn in the week ended January 27, the largest weekly total since the 2010-11 season began on September 1.
The USDA was scheduled to release its closely-watched monthly report on US and global corn supplies on Wednesday, February 9. The report could show that global inventories fell to 125.4 million tonnes, compared to last month's estimate of 127 million tonnes.
Elsewhere, wheat for March delivery climbed 0.98% to trade at US$8.62 a bushel, while soy for March delivery added 0.59% to trade at US$14.43 a bushel during European afternoon trade.
The USDA said US exporters sold 1.03 million tonnes of soy to in the week ended January 27, up 32% from the previous week.
