GRAINS-Corn up for 3rd session, near eight-year high on adverse weather

Reuters2021-04-15

* Corn near highest since June 2013 as cold weather threatens

* Wheat futures ease after strong gains, weather limits decline

(Adds quote in paragraph 3, updates prices)

By Naveen Thukral

SINGAPORE, April 15 (Reuters) - Chicago corn futures gained more ground on Thursday to trade near the previous session's eight-year top, as concerns over cold weather damage to the crop across the U.S. grain belt underpinned prices.

Wheat edged lower after Wednesday's rally which lifted the market to its highest in more than a month, while soybeans extended gains.

"There are expectations of lower corn and soybean planting in the U.S. and now the early growing weather is not perfect," said Pranav Bajoria, a director at Singapore-based brokerage Comglobal. "At the same time demand looks pretty strong, with more use of agricultural products for biofuels."

The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.4% to $5.96-1/4 a bushel, as of 0227 GMT, not far from the previous session's highest since June 2013 at $5.98 a bushel.

Soybeans added 0.2% to $14.12-3/4 a bushel, while wheat lost 0.3% to $6.48-1/2 a bushel, after climbing to its highest since March 11 at $6.56 a bushel on Wednesday.

A cold surge expected next week poses risk of damage to wheat crop in the southern U.S. Plains. In the Midwest, the weather is threatening the newly plated corn.

The cold weather also could cause some growers to delay their planting of corn and soybeans.

Experts are also predicting a dry spell in coming weeks on the European continent.

It is too early to estimate the impact on grain crops from a severe frost that has hit France, but there is some concern over damage in the central and southern parts of the country, farm office FranceAgriMer said on Wednesday.

Temperatures have fallen well below zero for several nights in a row in many parts of France, the EU's top grain producer, causing major damage to vineyards, orchards and sugar beet and prompting the government to promise financial aid.

Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Wednesday, traders said.

(Reporting by Naveen Thukral; Editing by Shailesh Kuber)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

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  • navoyhot
    2021-04-15
    navoyhot
    inflation or weak usd?
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