Chicago corn and soybean prices climbed on Tuesday, gaining support from the bullish crude oil market while wheat retreated after a 2-day rally, as investors waited to see the effect of weather on the wheat crop in U.S. and China.
The most active corn contract for May delivery closed at 7.355 U.S. dollars per bushel, up 4.5 U.S. cents, or 0.6 percent. May wheat declined 6.75 cents, or 0.8 percent, to 8.1025 dollars per bushel. May soybean rose 10.5 cents, or 0.8 percent, to 13.7525 dollars per bushel.
Market traders said that corn and soybean market stopped following the stock market and started to follow the bullish crude oil market, which helped support a moderate rally into the close.
Oil on Tuesday surged to the highest level since 2008’s September as the Middle East turmoil threatened to spread from Libya to top OPEC producers Saudi Arabia and Iran.
Meanwhile, wheat market retreated after rebounding for two days, as investors waited to see whether dry weather curbed yields in the U.S., the world’s largest exporter, and if rain improved crop conditions in China, the biggest consumer.
Statistics showed that about 25 percent of the wheat crop in Kansas, the biggest U.S. grower, was rated good or excellent as of Feb. 27, lower than 27 percent a week earlier. China Meteorological Administration said that rain in drought-affected areas of China will stop after as much as 49 millimeters (1.9 inches) fell in the past four days.