Third day rise for corn prices

The price of corn rose for a third day on the Chicago Board of Trade, with the commodity having bowed for its biggest rally since the start of the war in Ukraine, due to sluggish sales from the affected country and further risks to future supply .

Corn futures are up almost 0.9%, approaching their 2012 highs. Both the US Department of Agriculture and the United Nations on Friday revised their estimates for corn exports from Ukraine. . The country, a major supplier of grain and oilseeds, ships some quantities of rail, but much of its exports remain stranded as its ports remain largely closed due to the war.

Supply problems are expected to persist throughout the 2022-2023 season, with the Ukrainian Grain Association predicting that corn cultivation will fall by 39% compared to last year. Now, the focus is on the weather in the rest of the northern hemisphere, as crops intensify, but at a time when rising fertilizer costs could reduce crop volume.

“Supply risk from Ukraine continues to provide support” in prices, Warren Patterson, head of commodity strategy at ING, said in a report on Monday.

Meanwhile, the country’s reserves are rising, as the war has “sunk” its exports.

Corn futures are up 0.8% at $ 7.6675 a bushel on the Chicago Board of Trade. It is the third consecutive day of gains on these contracts and marks the longest rally since February 24, when Russia invaded Ukraine. Marginal soybean contracts record marginal changes.

Their rally continues with futures contracts for wheat at a two-week high on the Chicago Board of Trade. The Ukrainian grain group estimates that the harvest could shrink to 18.2 million tonnes, almost half of last year’s production.

Meanwhile, concerns about supply problems have been exacerbated by water shortages in Argentina, with wheat crops at risk, according to the Rosario Board of Trade. Sowing begins next month, while rising fertilizer costs are exacerbating the challenges facing the country, which is also a major grain supplier.