Corn prices jumped 4.6% after the federal government reported the sixth-largest export sale ever for the grain, which analysts believe is headed for China.
But the confirmation of a big sale renewed concerns that Chinese demand could stretch already-tight U.S. inventories of corn, pushing prices above their trading range of the past two weeks.
Corn for May delivery rose 29 cents, to settle at $6.53 a bushel Friday at the Chicago Board of Trade.
“It’s quite clear that the Chinese are going to need to be in this market and continue to need to make purchases,” Jason McKibben, an analyst with commodities brokerage AgriSource Inc. in West Des Moines, Iowa.
Corn pulled wheat prices higher. May wheat rose 16.25 cents, or 2.6%, to $6.4225 a bushel on the CBOT.
via Corn Prices Surge on Export Sales – WSJ.com.