Soybeans flat after hitting 4-year peak, corn, wheat ease

SINGAPORE/PARIS: Chicago soybeans climbed to their highest in more than four years on Monday, rising for a sixth consecutive session, on the back of strong Chinese demand and dryness in parts of top producer Brazil.

Corn retreated from a 14-month peak hit on Friday while wheat eased after sharp gains in the previous session.

"China has been buying a lot more soybeans and corn than previously," said Phin Ziebell, agribusiness economist at National Australia Bank.

"There are weather concerns for not just soybeans but across the grains complex."

The most-active soybean contract on the Chicago Board of Trade was unchanged at $10.83-3/4 a bushel by 1200 GMT, after hitting a session peak of $10.89-3/4 a bushel - the highest since July 2016.

Corn lost 0.5% to $4.17 a bushel, having climbed to its highest since August 2019 on Friday, while wheat fell 1.5% to $6.23-1/2 a bushel after jumping 1.6% in the previous session.

China has stepped up purchases of US agriculture products in recent months, with the country buying 9.8 million tonnes of soybeans from all origins in September, up 19% from a year earlier.

The country's imports of soybeans from Brazil jumped 51.4% in September from a year ago, data showed on Sunday, as cargoes purchased earlier in the year cleared customs.

Authorities in China are expected to issue more import quotas and buy millions of tonnes of additional corn in the new crop marketing year, three industry sources said, amid a surge in animal feed demand and tightening supplies.

There are also worries about dry weather in Brazil where planting for soybeans is underway.

Wheat fell back after rising on dry weather in key global producing regions, which has raised concerns about supply and prompted importers to step up purchases of the grain.

Ukraine is likely to ship abroad most of its 2020/21 wheat export quota by March-April 2021, traders said on Friday.

"Drier weather around the world continues to hurt global grain production and strong demand keep prices near contract highs. Traders will continue to watch weather maps in South America, fund activity and additional grain export sales this week," brokerage Allendale said in a note.