Chicago | Reuters — Chicago corn futures climbed on Wednesday, supported by strength in the crude oil market and firming wheat futures.
Wheat climbed as Russia joined France and Canada this week in reducing its production forecast for wheat at a time of strong global demand.
Soybeans firmed, though gains were limited as canceled exports from hurricane-damaged U.S. Gulf Coast ports weighed on futures.
The most-active corn contract on the Chicago Board of Trade (CBOT) ended up 13-1/4 cents higher at $5.33-1/2 a bushel, climbing 2.55 per cent, its biggest daily jump since July 14 (all figures US$).
Soybeans added 12 cents to finish at $12.94-1/2 a bushel and wheat firmed 11-1/2 cents to $7.12-1/4 a bushel.
Corn, a feed product for ethanol fuel, followed oil higher, as Brent crude ended 2.6% higher and ethanol stocks declined.
Corn also found support from wheat, which climbed as Russia anticipates up to one million fewer winter wheat hectares will be planted this fall.
“It’s Russia, Canada and France — all three countries reduced their production by some extent,” said Dan Hussey, senior market strategist at Zaner Group. “Couple that with the reduction from the WASDE on Friday in U.S. production, it’s tightening up that global balance sheet.”
The gains for soybeans were limited after the U.S. Department of Agriculture reported two soybean sales cancellations, including 132,000 tonnes from China and 196,000 tonnes from unknown destinations.
Analysts said those cancellations were likely due to closures along the U.S. Gulf Coast after Hurricane Ida damaged several terminals.
“The beans did get some bad news today, with the cancellation of export sales, but I think that’s been factored into prices already,” said Jack Scoville, market analyst at the Price Futures Group.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.