CANBERRA: Chicago corn futures eased on Monday as traders took a breather from a rally fuelled by technical buying and strong US exports that drove prices to a five-month high on Friday.
Algeria bought South American corn in tender, volume unclear, traders say
Soybean futures dipped, with plentiful supply keeping a lid on the market.
However, wheat climbed after Russia hiked export duty on the grain.
Fundamentals
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The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.1% to $4.39-1/2 a bushel by 0143 GMT, after climbing to $4.41 on Friday, the highest since June 28.
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CBOT soybean slipped 0.2% to $9.92-1/4 a bushel, while wheat rose 0.2% to $5.58-1/4 a bushel.
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Corn’s bullish technical move featured the actively traded March contract bouncing off its 100-day moving average on Thursday, breaking through its 50-day average to close above the prior session’s high and triggering follow-through buying.
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Speculators have turned positive on corn and were net buyers again on Friday, traders said.
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Larger-than-expected export sales in a weekly US Department of Agriculture (USDA) report on Thursday also supported prices.
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Traders are awaiting the monthly USDA supply and demand report on Tuesday. Analysts expect the agency to trim its 2024-25 estimate for US corn ending stocks, according to a Reuters survey.
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Russia, the top shipper of wheat, on Friday said it would raise its wheat export duty by almost 32%, as part of its efforts to curb exports amid high inflation and potential supply crunch due to the poor state of winter crops.
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However, Argus Media predicted that Russia would harvest an amount of wheat in 2025 similar to this year despite a dry and difficult start. Ukraine’s production could increase, it added.
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