Chicago Close: Corn Climbs on Big China Purchase

Corn futures jumped on Tuesday, propelled higher by strong export demand.

The USDA announced this morning that private exporters sold 1.36 million tonnes of old-crop US corn to China, the largest such purchase since August. Private exporters also sold 102,800 tonnes of old crop corn to unknown destinations. The sales suggest that current high prices have not turned off export demand yet. March corn ended 20 ¾ cents higher at $5.32 ¼ and December was up 9 ¾ cents to $4.44 ½.

The gains in corn helped to lift soybeans, with additional support coming from weakness in the American dollar today. March beans were up 26 ¾ cents to $13.70 ¼ and November added 18 ¼ cents to $11.48 ½.

The relative strength in corn and beans supported wheat, which was underpinned by the weaker greenback as well. Monthly crop condition ratings released by the USDA also showed a decline in the crop in the No. 1 production state of Kansas, down to 43% good to excellent as of Monday versus 46% at the end of December. March Chicago wheat was up 16 ¾ cents to $6.65 ¼, March Kansas City was 13 ¾ cents higher at $6.41 and March Minneapolis gained a dozen cents to $6.38.

Live cattle were higher today. Lean hogs were mainly higher.

Source: DePutter Publishing Ltd.

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