Corn followed wheat and soyabeans higher even as planters rolled across the US Midwest, allowing many farmers to make their best progress of the weather-delayed seeding seeding season. A firmer cash market – basis values were trending near record levels at soyabean processors – provided a pillar of support to futures prices. Better-than-expected export demand added additional strength.
“What this boils down to is just tight supplies,” said Dewey Strickler, president of Ag Watch Market Advisors, a grain industry consultancy. At 10:48 am CDT (1548 GMT), the most-active Chicago Board of Trade July soyabean contract was up 14-1/2 cents at $14.05-1/4 a bushel.
Prices briefly passed through a key technical resistance point at their 100-day moving average during the session but failed to hold support above that level. The May soyabean contract, which is in the delivery period, was up 17-1/2 cents at $14.96-1/2 a bushel and hit its highest level since March 11 on Thursday.
CBOT July soft red winter wheat was 15-3/4 cents higher at $7.21-3/4 a bushel. Analysts were expecting the USDA report on Friday to show that 2013 US winter wheat production will fall 9 percent from a year ago in its first official estimate of the 2013 crop. CBOT July corn was 8-3/4 cents higher at $6.41-3/4 a bushel.