FX.co ★ Corn review for April 5, 2011

The closing prices for futures on corn showed uprise on Tuesday, having reached a record high amid concerns over corn reserves reduction. By the end of CBOT trades May futures on corn closed with a 0.9% gain (7.66 ¾ US dollars per bushel). Earlier during the session the contract reached an intraday high of 7.70 ¾ per bushel which is a new all-time high for corn. The previous record was registered in June 2008 at USD 7.65 per bushel.
Futures continue to rise in an attempt to withhold demand. On Tuesday the US Agriculture Department announced 101 600 tons of corn to have been sold in an unknown direction.
The prices for corn increased 2-fold since last summer amid intense export demand on the part of ethanol producers and livestock farmers.
Concerns over supplies emerged shortly after last Thursday governmental data showed a 15% decline in corn reserves. It resulted in firming expectations of USD 8 per bushel in the closest time.
The growth of wheat futures quotations in the beginning of the session also supported corn market as both these crops are used as livestock feed.