Corn and wheat futures on the Chicago Board of Trade rocketed amid mounting speculation that strong export demand will lead to summer shortages.
The Agriculture Department said before trading that corn exports are up 15 percent from a year ago at 1.48 billion bushels, while wheat exports are up 10 percent at 1.07 billion bushels. And even with prices at record highs, traders said Spain is seeking as much as 21.1 million bushels of corn.
By May, the USDA expects wheat inventories to dwindle to 305 million bushels, the lowest since 1948, and corn inventories to drop to 367 million bushels, the lowest in 21 years. Unless demand slows, shortages could appear, traders said.
“The market seems to think (shortages) are going to happen,” said Dave Marshall, a farm marketing adviser with MidCo Commodities Inc. in Nashville, Ill. “This rally is designed to see what the last bushel is worth, and it’s going to be one expensive bushel.”
Corn for May delivery on the Chicago Board of Trade shot up the 12-cent daily trading limit to $4.60 1/2 a bushel, the highest in 119 years of trading corn on the exchange. May wheat surged 29.5 cents to $6.00 1/2 a bushel. May soybeans climbed 29.25 cents to $8.13 1/4 a bushel. May oats advanced the 10-cent limit to $2.38 3/4 a bushel.
