Corn set for biggest monthly gain in more than two years

Source: By Reuters • Posted: Sunday, May 2, 2021

CANBERRA, April 30 (Reuters) – U.S. corn futures edged higher on Friday, as the grain was poised to post its biggest one-month gain in more than two years on global supply concerns.

Soybeans were little changed, while wheat rose 0.5%.

The most-active corn futures on the Chicago Board of Trade were up 0.2% at $6.49-3/4 a bushel by 0401 GMT, after closing up 0.7% lower on Thursday.

Corn up 15% during April, the biggest monthly gain since May 2019.

Corn hit a near 8-year high of $6.84 a bushel earlier in the week.

“The market is tightening. Demand is strong and the market is still trying to figure out production in South America and the U.S,” said a Melbourne-based grains trader who declined to be named as he is not authorised to talk to the media.

Corn export sales totalled 1.075 million tonnes in the week ended April 22, the U.S. Department of Agriculture said, in line with analysts’ forecasts of 500,000 tonnes to 1.6 million tonnes.

Southern Brazil is forecast to stay dry into early May, but an expected warming of temperatures along with showers in the U.S. Midwest could help planting and early crop development.

The International Grains Council on Thursday trimmed its forecast for global corn (maize) production in the 2021/22 season with a cut in the crop outlook for the United States.

The most active soybean futures up 0.1% to $15.03-1/4 a bushel, after closing up 0.7% in the previous session.

Soybeans are up nearly 5% for the month, their 11th straight monthly gain.

Soybean export sales totalled 731,500 tonnes, topping forecasts ranging from 100,000 to 700,000 tonnes.

The most active wheat futures down 0.3% at $7.00 a bushel after closing up 0.9% in the previous session.

Wheat is up nearly 19% for the month, their biggest monthly gain since June 2017.

The European Commission on Thursday lowered its forecast of usable production of common wheat in European Union’s 27 member countries in 2021/22 to 124.8 million tonnes from an initial estimate of 126.7 million last month. (Reporting by Colin Packham; Editing by Rashmi Aich)