April 21, 2021

US corn futures highest in eight years, soybean nears seven year high

Chicago Board of Trade (CBOT) corn futures reached its highest in eight years, while soybean futures neared its highest in seven years, which analysts said are because of tightening supplies supporting cash markets and speculative buying, Reuters reported.

The record prices were also supported by dry weather conditions in Brazil affecting corn yields and cold weather delaying germination of 2021 United States crop.

May corn futures on the CBOT ended 14-1/2 cents at US$6.06-1/2 per bushel after hitting US$6.11-3/4, its highest price since June 2013 on a continuous chart of the most-active contract.

July soybean futures on the CBOT closed 21-1/4 cents at US$14.57-3/4 a bushel after reaching US$14.71-1/2, the highest since June 2014 for a most-active soybean contract.

CBOT July wheat ended 7-1/2 cents at US$6.61-1/4 a bushel.

Corn, soybean and wheat set life-of-contract highs, as well as several soybean oil contracts.

Terry Linn, analyst with Linn & Associates, said commodity funds' speculative buying is a factor, adding that CBOT operator the Chicago Mercantile Exchange (CME) Group expanded position limits in grain futures last month.

Market sources said soybeans high prices were also due to tensions in related vegetable oil and biodiesel markets, as a highly unusual trade of two shipments of Ukrainian rapeseed were sold to Canadian purchasers this month.

Brazil had suspended soy, soybean meal, soybean oil, and corn import tariffs until the end of 2021 to curb inflation.

- Reuters