Investing.com – Corn futures traded higher on Wednesday, as adverse weather conditions in Argentina and Brazil fuelled concerns over corn crop conditions in the world’s second and third largest producers of the grain.
On the Chicago Mercantile Exchange, corn futures for March delivery traded at USD5.9662 a bushel during European morning trade, gaining 0.41%.
It earlier rose by as much as 0.65% to trade at a daily high of USD5.9788 a bushel.
Corn prices were boosted after industry weather group T-Storm Weather said that it expected mostly dry weather during the next ten days across key corn-growing regions in Argentina and Brazil.
According to the weather group, nearly 40% of corn-growing areas in Brazil have been drier-than-normal since November 15.
The dry weather conditions were likely to reduce soil moisture, potentially threatening yields and weighing on the quality of the harvest.
Argentina and Brazil are the world’s second and third largest corn shippers. A downbeat crop outlook in the South American countries could potentially increase demand for U.S. supplies, which is both the world's largest corn producing nation and the world's largest exporter of the grain.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent sessions, as most Northern Hemisphere corn crops have been harvested by now.
Corn prices found further support amid speculation that last week’s world supply and demand report from the U.S. Department of Agriculture was too bearish and would be subject to significant revisions in next month’s report.
The USDA last week forecast global corn production would hit an all-time high of 867.5 million tons in the 2011-12 marketing season. Global ending stocks of the grain were also raised to 127.19 million metric tons, up from 121.57 million last month.
Meanwhile, commodity traders continued to eye developments surrounding the euro zone’s ongoing debt crisis. Earlier in the day, Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, at an average yield of 6.47%, up from 6.29% at a similar auction last month.
Following the auction, the yield on Italian 10-year bonds climbed to 7.17%, a level widely seen as unsustainable.
Elsewhere on the Chicago Mercantile Exchange, wheat for March delivery eased up 0.1% to trade at USD6.0100 a bushel, while soybeans for January delivery dipped 0.1% to trade at USD11.1825 a bushel.
On the Chicago Mercantile Exchange, corn futures for March delivery traded at USD5.9662 a bushel during European morning trade, gaining 0.41%.
It earlier rose by as much as 0.65% to trade at a daily high of USD5.9788 a bushel.
Corn prices were boosted after industry weather group T-Storm Weather said that it expected mostly dry weather during the next ten days across key corn-growing regions in Argentina and Brazil.
According to the weather group, nearly 40% of corn-growing areas in Brazil have been drier-than-normal since November 15.
The dry weather conditions were likely to reduce soil moisture, potentially threatening yields and weighing on the quality of the harvest.
Argentina and Brazil are the world’s second and third largest corn shippers. A downbeat crop outlook in the South American countries could potentially increase demand for U.S. supplies, which is both the world's largest corn producing nation and the world's largest exporter of the grain.
Traders have been focusing on crop prospects in Southern Hemisphere countries in recent sessions, as most Northern Hemisphere corn crops have been harvested by now.
Corn prices found further support amid speculation that last week’s world supply and demand report from the U.S. Department of Agriculture was too bearish and would be subject to significant revisions in next month’s report.
The USDA last week forecast global corn production would hit an all-time high of 867.5 million tons in the 2011-12 marketing season. Global ending stocks of the grain were also raised to 127.19 million metric tons, up from 121.57 million last month.
Meanwhile, commodity traders continued to eye developments surrounding the euro zone’s ongoing debt crisis. Earlier in the day, Italy’s Treasury sold the full targeted amount of EUR3 billion of five-year government bonds, at an average yield of 6.47%, up from 6.29% at a similar auction last month.
Following the auction, the yield on Italian 10-year bonds climbed to 7.17%, a level widely seen as unsustainable.
Elsewhere on the Chicago Mercantile Exchange, wheat for March delivery eased up 0.1% to trade at USD6.0100 a bushel, while soybeans for January delivery dipped 0.1% to trade at USD11.1825 a bushel.