Wednesday, 20 April 2022 02:43

Corn futures hit highest price since 2012

Written by Evelyn Alas

According to Bloomberg Line magazine, corn has continued to rise to the highest level in a decade as investors weigh threats to supplies from the war in Ukraine and the prospect of it bolstering demand for the U.S. crop.

Russia's invasion of Ukraine has sent global grain trade into turmoil, crippling crop flows from Ukrainian ports and altering prospects for spring plantings. This will increase importers' dependence on supplies from the United States, where the 2022 planting season is underway.

About 2% of the U.S. corn crop is in the ground.

Corn futures for july rose as much as 1.2% to US$7.9350 a bushel in Chicago, the highest since september 2012 for a more active contract.

Prices are heading for a fourth consecutive rally, the longest streak since the Russian invasion of Ukraine began in late february. The market was closed on friday for a holiday.

The war has created opportunities for India to ship more wheat; Major buyer Egypt, which relied heavily on Black Sea grain, has approved India as a source for wheat imports. The South Asian country aims to ship 3 million tons to Egypt this year, according to the Indian Commerce ministry.