Chicago Close: Higher Fertilizer Prices Boost Corn

Rising fertilizer prices helped to push corn futures higher on Monday. Soybean were also higher on the day while wheat ended mixed.

Corn is a high input crop and traders fear the sharp increase in fertilizer prices may prompt some farmers to reduce corn plantings in the upcoming year. According to DTN, retail prices for a variety of fertilizer products have jumped anywhere from 40% to 101% over the past year. Further support came from strong export demand, as weekly US corn export inspections for the week ended Oct. 14 came in at 976,218 tonnes, up from 842,000 the previous week, and a new high for the season. December corn gained 7 cents to $5.32 ¾ and March was 6 ¼ cents higher at $5.40 ½.

Gains in soyoil and strength in world vegetable oil markets helped to bolster soybeans. Export demand was positive as well – US soybean shipments for the week ended Oct. 14 were reported at 2.298 million tonnes. That was up from 1.74 million last week, and also a new high for the marketing year. November beans were up 3 ¾ cents to $12.21 ½ and January added 2 ¾ cents to $12.29.

Winter wheat contracts were higher from spillover support from corn and soybeans, although spring wheat did see a small loss. December Chicago wheat climbed 2 ¼ cents to $7.36 ¼, December Kansas City was up 5 ¼ cents to $7.49 and December Minneapolis dipped a penny to $9.67 ¾.

Source: DePutter Publishing Ltd.

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