SINGAPORE- Chicago corn futures edged higher on Thursday, with the market trading close to its highest level in two weeks, supported by concerns over lower production in Brazil.
Soybeans inched higher, while wheat jumped to its highest in more than two weeks as short-covering by investors drove gains in agricultural products.
“Brazilian corn crop is the main worry for the market,” said one trader in Singapore. “Overall, prices are pretty low to encourage some short-covering with weather threat to the crop.”
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1 percent at $4.52-1/2 a bushel, not far from its highest since Jan. 12 at $4.52-3/4 a bushel reached earlier in the session.
The corn market dropped to a three-year low last week.
Soybeans gained 0.4 percent at $12.45 a bushel and wheat rose 0.9 percent to $6.16 a bushel, after climbing to its highest since Jan. 8 at $6.17-1/4 a bushel earlier on Thursday.
Forecasters are expecting lower production from Brazil’s second corn crop, reflecting a smaller planted area.
Meanwhile, stressful heat is forecast for crop areas of Argentina, which has been on course for a bumper harvest.
