GRAINS-US New-Crop Soy Hits Contract High; Corn, Wheat Firm
Benchmark Chicago soybeans hit a contract high on Tuesday, while corn and wheat were at their highest in over a week as initial reports from a Midwest crop tour showed severe damage from the worst drought in more than 56 years.
Grain futures have picked up steam again, buoyed as importers snap up cargoes after prices backed off record highs. The flurry of activity has also raised the spectre of another food price crisis, with measures taken to ensure supply seen as tightening the supply/demand balance.
Ironically, some analysts are saying that higher prices are needed to “ration” or contain demand.