SINGAPORE- Chicago corn gained more ground on Thursday as strong investor buying supported prices, which hit a one-month low earlier this week, while the market is likely to focus on US planting for direction in the weeks ahead.
Wheat and soybeans edged higher, although gains in the wheat market were limited by plentiful Russian supplies.
“Funds are covering short positions which is bit supportive for prices,” said one Singapore-based trader. “US corn planting season is starting and any risk to planting due to adverse weather is likely to support prices.”
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.2 percent at $4.32-1/2 a bushel, having gained more than 1 percent in the previous session.
Wheat rose 0.1 percent to $5.56-1/2 a bushel and soybeans also climbed 0.1 percent to $11.83 a bushel.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Wednesday, traders said.
Traders are monitoring Midwestern weather ahead of corn planting that is due to ramp up over the coming weeks. While rain and snow in the central corn belt are expected to boost soil moisture reserves, there are forecasts of higher temperatures later this month.
The US Department of Agriculture on Monday rated the US winter wheat crop at its highest early spring level in five years, and crop-boosting rains are forecast for the southern US Plains wheat belt.
Hefty wheat exports from Russia, which consultancy SovEcon estimates set a March record, are weighing on global prices.
However, Russian authorities have halted grain exports on some ships belonging to Aston, one of the biggest local grain trading houses, two industry sources said, widening a quality probe which has already curbed the exports of another major trader.
A major disruption to Russian shipments can drive up global prices.
In news, the severe drought which has forced the Panama Canal, one of the world’s busiest trade passages, to limit daily crossings could impact global supply chains during a period of high demand, S&P Global said on Wednesday.
