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Corn Trades Near 14-Month High in Chicago on Speculation About Supply Drop
Corn traded within 0.7 percent of a 14-month high in Chicago on speculation that dwindling supplies of grain for use as feed may support prices.
Corn for December delivery slipped 0.2 percent to $4.655 a bushel on the Chicago Board of Trade at 2:14 p.m. Paris time. The contract yesterday rose as high as $4.69, the highest price for the most-active contract since June 11, 2009. Prices climbed last week for the fifth time in six weeks.
“Fundamentals for corn are very healthy, as there’s concern about the supply side because of tightening feed-grain stocks,” Sudakshina Unnikrishnan, an analyst at Barclays Capital in London, said today by phone. “Demand has continued to rise significantly.”
Ukraine today reduced its corn-harvest forecast by 6.8 percent to 11 million metric tons because of drought. Still, the crop will suffice to meet domestic needs and permit the export of 4 million to 5 million tons of the grain in the marketing year that started July 1, Agriculture Minister Mykola Prysyazhnyuk said in an interview.
“In recent weeks, metals and oil took a bit of a battering because of concerns about the global economy,” Unnikrishnan said. “However, agricultural products including corn have been trading more on the back of their own specific fundamentals.”
Wheat for December delivery fell 0.4 percent to $7.3225 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris lost 0.3 percent to 229 euros ($290.99) a ton.
Russia’s government raised its estimate for national grain stockpiles to 26 million tons from about 22 million tons, sufficient to meet domestic demand for food and animal feed, Agriculture Minister Yelena Skrynnik said yesterday.
The worst Russian drought in at least a half century has destroyed 30 percent of crop plantings in the 38 regions across the country in which the government declared emergencies. Weather-related losses amount to more than 39 billion rubles ($1.3 billion), Skrynnik said.
Soybeans for November delivery were unchanged at $10.52 a bushel in Chicago after three days of gains.
To contact the reporter on this story: Dan Weeks in London at dweeks1@bloomberg.net
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