HANOI- Chicago corn futures rose on Wednesday to a two-week high as China’s purchase of US supplies of the grain hit the highest level since July, while rains disrupting harvest in Brazil lent soybeans some support.
The Chicago Board of Trade (CBOT) most-active corn contract climbed as much as 1.4 percent to $5.39-1/2 a bushel, its highest since Jan. 13, and was on track to post a third straight session of gain.
“The near-term underlying bullish sentiment is still very much in place. We still have two to three months at least before we have confirmation that the new crop of global grain or oilseed will be adequate,” said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities.
“Until then, the market is likely to continue upwards, with China demand as the key driver… unless China ends up having a real issue with the African swine fever.”
The US Department of Agriculture announced on Tuesday the biggest corn sale since July of 1.36 million tons to China, the world’s second-largest consumer of the grain behind Japan.