You are here

GRAINS-Corn hits 7-month high on U.S. exports, wheat turns lower

(New throughout, updates prices, adds comments; changes byline,
dateline, previous HAMBURG)

By Michael Hirtzer

CHICAGO, March 13 (Reuters) - U.S. corn futures
climbed to a seven-month high on Tuesday, buoyed by robust
export demand amid drought conditions in No. 3 global shipper
Argentina, traders said.

Soybeans also rose as rains forecast this week in Argentina
were likely to provide only limited relief for soy and corn
plants damaged by months of dry growing conditions.

Chicago Board of Trade May corn was up 1 cent at
$3.91-3/4 per bushel at 12:45 p.m. CDT (1745 GMT), off their
earlier peak of $3.95-1/4.

CBOT May soybeans were up 5 cents at $10.46,
recovering from a three-week low reached on Monday.

"The debate is now about just how much the Argentine soybean
crop will be reduced by drought. Soybean pods are still filling
so there remains a lot of potential for damage if the dryness
continues," said Charles Clack, agricultural commodity analyst
at Rabobank.

Due in part to expectations of a smaller Argentine corn
harvest, world corn buyers were purchasing most of their
near-term needs from the United States.

South Korean importers bought over 1 million tonnes of corn
in the past week, much of it from the United States, European
traders said. The U.S. Department of Agriculture separately
announced a sale of 210,000 tonnes to South Korea of corn that
could be U.S. grain or shipped from another country.


Wheat prices turned lower at midday. The latest weather
models showed slightly higher chances for rains in the parched
southern U.S. Plains wheat belt, traders said.

Benchmark CBOT May wheat was down 4-3/4 cents, or 1
percent, at $4.86 per bushel and K.C. May wheat was off
3-1/4 cents to $5.19.

"Everything is looking kind of toppy today ... that was a
nasty reversal in wheat," said Zaner Group analyst Ted Seifried.

Wheat earlier rose after USDA late on Monday rated 12
percent of the winter wheat crop in the Kansas producing region
as good to excellent condition, down from 13 percent a week

The USDA rated 53 percent of the Kansas crop as poor to very
poor, up from 50 percent the previous week.

"There is concern that time is starting to run out for parts
of U.S. wheat as we are coming closer to the point in the spring
when the crop will move out of winter dormancy and will need
moisture, otherwise yields could be hit," Clack said.
(Additional reporting by Michael Hogan in Hamburg and Colin
Packham in Sydney
Editing by James Dalgleish)

© Copyright Thomson Reuters 2018. Click For Restrictions -

Read more about

Talk in Marketing

Most Recent Poll

What crops do you grow on your farm?