KANSAS CITY, MO./REUTERS
Corn futures rallied April 3, matching the record-high price set during the 2008 global food crisis and extending sharp gains posted the previous week due to very tight supplies.
Futures added over three per cent to a rally that began on March 31 when the U.S. Department of Agriculture pegged quarterly corn stocks as of March 1 at levels well below trade expectations. The tightening supply underscored the strong demand for the feed grain.
The market was also supported by the prospect of delays in spring plantings in the United States due to rains.
Corn prices jumped over 14 per cent since the rally started March 31, and all signs point to even bigger gains.
“There are no signs saying corn won’t go higher. Stocks were bullish for corn and now planting weather doesn’t look good,” said Mario Balletto, analyst for Citigroup.