Corn futures fluctuated on Wednesday, as some traders are speculating that low supplies will boost the price of the grain. At 10:41 a.m. EST, corn futures for September delivery were down 2 cents to $4.494 per bushel on the Chicago Board of Trade.
September wheat futures dropped 9.6 cents to $6.926 per bushel.
"Fundamentals for corn are very healthy, as there's concern about the supply side because of tightening feed-grain stocks, Sudakshina Unnikrishnan, an analyst at Barclays Capital in London, told Bloomberg News in a phone interview. "Demand has continued to rise significantly."
Unnikrishnan also said that corn and wheat, along with other fundamental agricultural products, have been trading based on supply and demand considerations, as opposed to the global economic concerns that have buffeted commodities like oil, copper and natural gas.
Commodities brokers have profited handsomely Russia's ban on the export of grain in the wake of the nation's worst drought in decades. Dry weather and high temperatures destroyed 30 percent of the crop planting in 38 different regions.
The supply gap left by Russia has been filled by U.S. corn and wheat farmers, but stockpiles of those grains are running low here as well.
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