Corn rose for a fifth day in a row reaching a new 30 month high on the Chicago Board of Trade. Wheat also climbed due to shrinking global stockpiles. Also, soybeans rose on speculation that a strengthening YUAN may increase imports to China.
Last week the US Dept of Agriculture says that global corn supplies will fall 14 percent this year and wheat inventories will drop 9.8 percent. Prices also gained as the dollar weakened, making US crops cheaper in terms of other currencies, we saw the YUAN advancing to a 17 year high against the USD yesterday.
Corn for March delivery gained 0.9 percent to $6.655 a bushel at 11:27 a.m. LST on the Chicago Board of Trade. The grain touched $6.6625, which is the highest price since July 2008. Soybeans for March delivery rose 1.2 percent to $14.3025 a bushel.
March delivery wheat jumped 1.7 percent to $8.065 a bushel, climbing for a second straight day.
Data from the University of Nebraska at Lincoln showed that conditions in Kansas ranged from abnormally dry to severe drought which could affect wheat in the long term.
In China, about 9.9 million acres of crops have had up to 90 percent less rain than last year. Floods in Australia have delayed shipments and reduced crop quality; helping to increase wheat prices.
