Corn: Oil rose to an almost 10-year high of $8 per bushel on prospects of stronger demand against smaller production and supply chain issues.
Surging crude oil prices, and news from the Biden administration that it will increase ethanol usage this summer helped to support new buying.
At the same time, dry conditions in Brazil, smaller-than-expected planting areas in the U.S, and delay in China’s corn planting amid lockdowns are set to cause significant production losses.
This added to the already existing fears of supply disruptions from Russia and Ukraine, the two major global corn exporters.
Since Russia invaded Ukraine, Ukraine suspended commercial shipping at its ports while Russia paused grain trade following the West’s trade sanctions on Moscow. .