Investing.com – Corn futures climbed to a two-week high on Wednesday, extending sharp gains from the previous session after Russia said it could reintroduce a grain export limit, renewing concerns over tightening global supplies.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD6.5025 a bushel during European morning trade, climbing 0.78%.
It earlier rose by as much as 1.2% to trade at USD6.5462 a bushel, the highest price since September 27.
Corn prices surged nearly 6.6% on Tuesday after Russia’s First Deputy Prime Minister Viktor Zubkov, who is responsible for the country's agricultural sector, said that the country was considering reintroducing a limit on grain exports, just three months after it lifted an earlier export ban.
According to Mr. Zubkov, the country will implement a grain export limit if Russian grain shipments were to exceed 24 million metric tons in 2011-12 marketing season, amid fears that its surging pace of exports will cause shortages on the domestic market.
Russia, once the world's third largest grain exporting nation, has exported nearly 10.7 million tons of grain since July 1, when authorities lifted the grain export ban imposed last August, when the worst drought in at least half a century wiped out a third of its grain crops.
Lower corn exports from Russia could boost demand for U.S. supplies, which is both the world's largest corn producing nation and the world's largest exporter of the grain.
Corn futures found further support after the U.S. Department of Agriculture said Tuesday that corn exports inspected at U.S. ports last week rose by 8.7% from a week earlier to 31.8 million bushels, as lower prices boosted demand.
The corn inspected included 4.7 million bushels bound for China, the world’s second largest corn consumer, the USDA said.
Meanwhile, grain traders were awaiting the release of the USDA’s latest World Agricultural Supply and Demand Estimates report on corn and other crops due later in the day.
The data could show that global corn inventories for the 2011-12 marketing season rose to 120.5 million tons, up from last month’s projection of 117.4 million tons.
Elsewhere on the Chicago Mercantile Exchange, wheat for December delivery eased up 0.05% to trade at USD6.6062 a bushel, while soybeans for November delivery slipped 0.16% to trade at USD12.3300 a bushel.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD6.5025 a bushel during European morning trade, climbing 0.78%.
It earlier rose by as much as 1.2% to trade at USD6.5462 a bushel, the highest price since September 27.
Corn prices surged nearly 6.6% on Tuesday after Russia’s First Deputy Prime Minister Viktor Zubkov, who is responsible for the country's agricultural sector, said that the country was considering reintroducing a limit on grain exports, just three months after it lifted an earlier export ban.
According to Mr. Zubkov, the country will implement a grain export limit if Russian grain shipments were to exceed 24 million metric tons in 2011-12 marketing season, amid fears that its surging pace of exports will cause shortages on the domestic market.
Russia, once the world's third largest grain exporting nation, has exported nearly 10.7 million tons of grain since July 1, when authorities lifted the grain export ban imposed last August, when the worst drought in at least half a century wiped out a third of its grain crops.
Lower corn exports from Russia could boost demand for U.S. supplies, which is both the world's largest corn producing nation and the world's largest exporter of the grain.
Corn futures found further support after the U.S. Department of Agriculture said Tuesday that corn exports inspected at U.S. ports last week rose by 8.7% from a week earlier to 31.8 million bushels, as lower prices boosted demand.
The corn inspected included 4.7 million bushels bound for China, the world’s second largest corn consumer, the USDA said.
Meanwhile, grain traders were awaiting the release of the USDA’s latest World Agricultural Supply and Demand Estimates report on corn and other crops due later in the day.
The data could show that global corn inventories for the 2011-12 marketing season rose to 120.5 million tons, up from last month’s projection of 117.4 million tons.
Elsewhere on the Chicago Mercantile Exchange, wheat for December delivery eased up 0.05% to trade at USD6.6062 a bushel, while soybeans for November delivery slipped 0.16% to trade at USD12.3300 a bushel.