Grain Traders Finally Getting Invited to the Commodity Party
- Corn reaches seven-week high as wheat, soybeans advance
- Tighter corn supplies leave market vulnerable to weather shock
Photographer: Daniel Acker/Bloomberg
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After lagging behind metals and energy for the past year, corn prices got a jolt higher on Wednesday as March futures touched a seven-week high. Wheat climbed the most since July, and soybeans also rose.
Global corn inventory before this year’s North American harvest is projected to drop 9.7 percent, the first annual decline since 2011, U.S. government data show. At the same time, recent dry weather in Argentina and excessive rain in Brazil are threatening yields and adding to the tighter supply outlook. In the U.S., drought is expanding across the center of the country.