Corn Prices Near Three-Year Highs on Wheat Strength and Supply Concerns

Corn prices are nearing their highest levels in three years due to spillover strength in wheat and supply concerns over the US crop.

The nearby futures market is leading the charge, with contracts up 7 ¾ to 10 ¼ cents on Tuesday's session. All contracts closed above the $5 mark.

The US corn crop is progressing as expected, with 86% of the crop in the dough stage by August 23. However, condition ratings are down 3%, with 57% rated in good to excellent condition. The Brugler500 index was also down 5 points to 348.

Brazil and Argentina are set to increase their corn acreage for the upcoming harvest season. Brazil is estimated to have 23.3 million hectares (57.58 million acres) planted, up 3.1% from last year if realized. Argentina's corn acreage is expected to remain steady at 8.4 million hectares (20.76 million acres).