Corn futures climb on supply worries - CBOT

Soybean, wheat futures dip
calendar icon 12 June 2023
clock icon 2 minute read

Chicago Board of Trade (CBOT) corn futures edged higher in early Asian trading on Monday amid expectations of supply concerns, after a historic drought affected the production of the crop in the world's third-biggest exporter Argentina, reported Reuters.

Soybean and wheat futures both posted losses. Corn futures gained 0.9% to $6.09-1/2 a bushel.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.3% at $13.81-3/4 a bushel, and wheat lost 1.0% to $6.23-3/4 a bushel.

In global grain news, Argentina's main grains port is seeing the lowest number of trucks with soy and corn in at least 22 years, the Rosario grains exchange said on Friday, after a historic drought battered production of the two key crops.

Russia is still not satisfied with how a Black Sea grain deal is being implemented, Deputy Foreign Minister Sergei Vershinin said on Saturday after meeting senior U.N. trade officials a day earlier, the TASS news agency reported. Russia has threatened to walk away from the grain deal on July 17 if demands to improve its own food and fertilizer exports are not met.

A Russian wheat supplier that sold a 55,000-ton cargo to Egypt is "committed" to delivering it but could look to source the grain from another country, an Egyptian minister said on Saturday amid confusion about a minimum price imposed by Russia.

The US Department of Agriculture confirmed private sales of 197,000 metric tons of US soybeans for shipment to unknown destinations in the 2022/23 marketing year.

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

In market news, US shares struck new highs for the year on Friday and helped lift world stocks to a 13-month peak, as rising bets that the Federal Reserve will skip a rate hike next week overshadowed worries about US markets being drained of cash.

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