March 2, 2011

US corn futures hit 32-month high

US corn futures increased for a third day on Tuesday (Mar 1), reaching a 32-month high due to a rise in US corn exports in the preceding week, thus, showing a rising demand for US supplies. 

On the Chicago Mercantile Exchange, corn futures for May delivery traded at US$7.3308/bushel during the European afternoon trade, climbing 0.42%.

It increased to US$7.3388/bushel earlier and it is the highest price since July 7, 2008.

The USDA said in its weekly grains report on Monday (Feb 28) that the volume of corn for export inspected at US ports in the week that ended on February 17 soared by 67% to 1.65 million tonnes.

According to the report, it was the biggest weekly sales figure since mid-September and the fourth straight week that US corn export sales topped one million tonnes.

The US is both the world's largest corn producing nation and the world's largest exporter of the grain.

Meanwhile, the International Grains Council (IGC) said that it expected global corn inventories to decrease for a third consecutive season in 2011-12 in spite of increased planting by US farmers.

"Given initial planted area assumptions and, assuming trend yields, larger corn harvests are forecasted in several key producers, however with strong demand, the uptick in production may not be enough to rebuild supplies which are currently heading towards their lowest for four years," the report said.

Wheat for May delivery added 0.09% to trade at US$8.1712/bushel, while soy for May delivery gained 0.46% to trade at US$13.72/bushel during European afternoon trade.