Forex Pros – Corn futures were up for a fifth day on Monday, re-approaching Friday’s record high as lingering concerns over tightening U.S. supplies boosted prices.On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD7.8902 a bushel during European morning trade, climbing 0.4%. It earlier rose to a daily high of USD7.9238 a bushel. On Friday, corn prices traded at an all-time high of USD7.99 a bushel.
The U.S. Department of Agriculture said in its World Agricultural Supply and Demand Estimates report published last Thursday that it now expected U.S. corn supplies in the 2010-11 marketing season ending August 1 to total 695 million bushels, the lowest amount since the 1996 season. The forecast was down 4.8% from last month’s estimate of 730 million bushels and confounded expectations for 771 million bushels.
“Planting delays through early June in the eastern Corn Belt and northern Plains are expected to reduce planted area, more than offsetting likely gains in the western Corn Belt and central Plains where planting was ahead of normal by mid-May,” the USDA said in the report.
Total global stockpiles were projected at 111.89 million metric tons, down from May’s forecast of 129.14 million tons, as adverse weather in China delayed crop planting and threatened yields.
The Professional Farmers of America, an industry group, said in a report published over the weekend that the USDA forecast confirmed that “corn supplies will stay tight for another year and that means higher prices.”
The U.S. is both the world’s largest corn producing nation and the world’s largest exporter of the grain.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
Elsewhere, wheat for July delivery rose 0.4% to trade USD7.6362 a bushel, while soybeans for July delivery added 0.22% to trade at USD13.8575 a bushel during European morning trade.
ForexPros.com
