* Corn approaches near $5 a bushel
* Wheat falls from Dec 2014 high
* Soybeans firm 1% on S.America weather conditions
By Colin Packham
CANBERRA, Jan 6 (Reuters) – U.S. corn futures rose more than
1% on Wednesday to hit their highest in more than six years, as
concerns about global supplies were fuelled by production issues
in South America, a major exporting region.
Wheat retreated from its highest since December 2014, while
soybeans jumped 1% as investors were concerned about low
supplies due to dry weather conditions in South America at a
time of brisk Chinese demand.
The most active corn futures on the Chicago Board Of Trade
Cv1 were up 1.5% at $4.99 a bushel by 0337 GMT, near the session
high of $4.99-1/4 a bushel – the highest since May 2014. Corn
closed 1.7% firmer in the previous session.
“The market is solely focused on South America and
expectations of lower supply,” a Melbourne-based grains trader
told Reuters. He declined to be named as he is not authorised to
speak with the media.
Dry weather in major exporters Brazil and Argentina has
stoked fears of lower global supplies.
Argentina last week said it will suspend sales of corn for
export until Feb. 28 as the government seeks to ensure ample
domestic food supplies.
The most active wheat futures were down 0.3% at $6.52
a bushel, having closed 1.9% firmer on Tuesday when prices hit a
high of $6.65 a bushel – the highest since December 2014.
The adverse weather in South America were also supporting
soybeans.
The most active soybean futures were up 1% at
13.61-1/4 a bushel, having firmed 2.6% on Tuesday when prices
hit a June 2014 high of $13.73-1/4 a bushel.
Brazil’s soybean harvest has started slowly in the
top-producing state of Mato Grosso. Local farmers say harvesting
is behind last year’s pace due to scarce rainfall earlier in the
season.
(Reporting by Colin Packham, Editing by Sherry Jacob-Phillips)
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