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Grain futures higher - Corn climbs to 5-week top on supply concerns

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Investing.com - U.S. grain futures were mostly higher during early U.S. morning hours on Tuesday, with corn prices rising to a five-week top as lingering concerns over global demand outstripping tight supplies continued to support the grain.

On the Chicago Mercantile Exchange, corn futures for May delivery traded at USD7.2412 a bushel, up 0.55% on the day.

The May contract rose by as much as 0.5% earlier in the session to hit a daily high of USD7.2438 a bushel, the strongest level since February 6.

Corn futures have been on an upward trend in recent sessions after the U.S. Department of Agriculture said last week that U.S. stockpiles before the next harvest will total 632 million bushels, the lowest level in 17 years.

The May contract has rallied nearly 6% since falling close to a three-month low of USD6.8212 a bushel on March 7.

Meanwhile, soybeans futures for May delivery traded at USD14.1312 a bushel, up 0.2% on the day. The May contract held in a tight trading range between USD14.0938 a bushel, the daily low and a session high of USD15.1538 a bushel.

The May contract fell to USD14.0437 a bushel on Monday, the weakest level since January 14, amid growing concerns over diminishing demand for U.S. supplies.

Prices have been on a downward trend in recent weeks as market players feared expectations for a bumper crop in Brazil and Argentina could result in lower demand for U.S. supplies.

Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

Elsewhere, wheat for May delivery traded at USD7.1488 a bushel, up 0.25% on the day. The May contract traded in a range between USD7.1225 a bushel, the daily low and a session high of USD7.1562 a bushel.

Wheat prices have been consolidating below a three-week high of USD7.2537 a bushel hit last Friday.

Wheat prices have been well-supported in recent sessions as traders closed out bets prices would fall lower after slumping to an eight-month low of USD6.8125 a bushel on March 6.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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