US corn futures jump to two-month high on bullish demands

Corn rose to a two-month high on signs of increased demand for supplies from the US, the world's largest grower and exporter.

US shippers reported sales of 1.851 million tonnes (73.4 million bushels) during the week ended April 29, up 51% from a week earlier and the most since January 2008, a government report showed. The total included the 115,000 tonnes sold last week to China, the largest amount in nine years, and 240,100 tonnes sold to unknown destinations. Japan, South Korea and Mexico combined to purchase 53% of last week's total.

Corn futures for July delivery rose 6.5 cents, or 1.7%, to US$3.795 a bushel at 11:24 a.m. on the CBOT, after touching US$3.7975, the highest price for a most- active contract since March 5. Corn rose 8.8% in April.

Earlier, the grain fell 10% this year in part because the USDA forecasts combined production to rise 13% in Brazil and Argentina, the biggest exporters after the US.

The last time China was a net importer was 14 years ago when drought reduced crops. China imported 1.476 million tonnes of corn in the marketing year that ended September 30, 1996, down from 4.287 million tonnes purchased a year earlier.

Corn is the biggest US crop, valued at US$48.6 billion in 2009, government figures show.