Grain prices have risen as a result of the conflict in Ukraine and the cold weather in the United States.
Corn futures on the Chicago Board of Trade (CBOT) hit $8 a bushel on Monday, reaching their highest level in nearly a decade, owing to concerns about unfavorable weather in the United States and the Ukraine war delaying grain exports.
Traders are concerned that cold weather could impede crop planting in the United States this spring, potentially reducing yields at harvest time in the autumn. According to Rich Feltes, head of market research for broker RJ O’Brien, forecasts suggest “few brief open periods for Midwest planting” through the end of the month. Planting has gotten off to a poor start, with only 2% of the crop seeded as of April 10, compared to a five-year average of 3%
At 3 p.m. CDT, the US Department of Agriculture will release a weekly report on farmers’ progress (2000 GMT).
“It appears that some maize will be planted before the end of April, but the fighting in Ukraine continues,” said Dennis Smith of Archer Financial Services in Chicago.
Because the crisis in Ukraine has placed doubt on its crops and halted agricultural exports from the Black Sea region, a major worldwide producer of corn and wheat, US grain production is especially vital this year.
According to Ukraine’s farm minister, over 1.25 million tonnes of grains and oilseeds are still on commercial vessels stranded in Ukrainian seaports as a result of Russia’s invasion, and some of the cargo may deteriorate in the near future.
At the CBOT, most-active corn futures Cv1 hit an all-time high of $8.03 a bushel, the highest level since September 2012. The contract was up 18-3/4 cents at $8.02-1/2 a bushel by 10:10 a.m. CDT (15:10 GMT).
CBOT soybeans Sv1 increased by 24 cents to $16.89-1/4 a bushel, while CBOT wheat Wv1 increased by 28-1/2 cents to $11.33 a bushel, approaching a four-week high.
After the most active contract, wheat futures recovered. Wv1 fell for the first time in nearly two weeks on Thursday. On that day, the CBOT markets were closed on Frida
Source:Aljazeera
