Grains: Corn sets 7-1/2-year high, buoyed by continued sales to China
29/01/2021 22:35
(New throughout, updates prices, market activity and comments
to close, adds new highs in CBOT corn)
By Julie Ingwersen
CHICAGO, Jan 29 (Reuters) - U.S. corn futures rose more than
2% on Friday and set a multi-year high after China booked its
biggest purchase of U.S. corn to date, fueling expectations of
tightening global supplies.
Wheat futures also rose about 2%, chasing corn higher, and
soybeans firmed as well.
Chicago Board of Trade March corn CH1 settled up 12-1/2
cents at $5.47 per bushel after reaching $5.53-3/4, the highest
price on a continuous chart of the most-active contract Cv1
since June 2013.
CBOT March wheat WH1 ended up 16 cents at $6.63 a bushel
and March soybeans SH1 settled up 16-3/4 cents at $13.70 a
bushel.
For the month of January, CBOT corn Cv1 rose 63 cents a
bushel or 13%, including a gain of 46-1/2 cents in the last
week. Soybeans Sv1 advanced 4.5% for the month and wheat Wv1
rose 4.4%.
Corn futures jumped Friday after the U.S. Department of
Agriculture confirmed private sales of 2.108 million tonnes of
U.S. corn to China. It was the second-biggest daily corn sales
announcement on record, eclipsed only by a deal for 3.72 million
tonnes to the Soviet Union in 1991. urn:newsml:reuters.com:*:nL1N2K41NO
The latest sale followed deals earlier this week that netted
China a combined 3.74 million tonnes of U.S. corn. urn:newsml:reuters.com:*:nFWN2K417B
Already the world's top soy importer, China is buying corn
to help rebuild its massive hog herd. Chinese corn imports could
climb to between 25 million and 27 million tonnes in the current
2020/21 crop year, including up to 20 million tonnes from the
United States, Dan Basse, president of Chicago-based AgResource
Co, said this week. urn:newsml:reuters.com:*:nL8N2K24GF
Soybean futures followed corn higher, with worries about
poorly timed rains in Brazil lending support.
"It's a wet forecast for Brazil, which means possible
(soybean) harvest delays, and also means that they won't be able
to get their product out as quickly. That could open up the door
for U.S. business," said Brian Hoops, president of Midwest
Market Solutions.
Wheat futures also advanced, given that tightening corn
supplies could drive up demand for wheat as livestock feed.
However, agriculture consultancy Sovecon raised its forecast
for Russia's 2020/21 wheat exports by 1.6 million tonnes, to
37.9 million tonnes, citing current high export levels. Russia
is the world's top wheat supplier. urn:newsml:reuters.com:*:nL1N2K418K
(Additional reporting by Gus Trompiz in Paris and Enrico Dela
Cruz in Manila; Editing by Marguerita Choy and David Gregorio)
((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters
Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))