Corn firms, poised for 5th week of gains on tightening supplies

SINGAPORE: Chicago corn rose on Friday with the market set for a fifth week of gains, as concerns over supplies from key South American suppliers underpinned prices.

Soybeans rose to trade near their highest since June 2014 reached earlier this week, while wheat is on track for a third week of gains.

"Most commodities have started 2021 on bullish note. For soybeans and corn we supply issues on one side and funds driven buying on the other side," said one Singapore-based grains trader at an international trading company.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.7% at $4.97-1/2 a bushel by 0346 GMT. Corn has added more than 18% to its value in five weeks of rally.

The market hit a May 2014 high of $5.02-3/4 a bushel earlier in the week.

Soybeans rose almost 4% this week, the fourth straight weekly gain and wheat is up around half a percent this week.

Corn and soybeans were supported by dry weather in South America.

The U.S. Department of Agriculture reported export sales of U.S. old-crop soybeans in the week ended Dec. 31 at just 37,000 tonnes, the lowest weekly total so far in the 2020/21 marketing year that began Sept. 1. Traders had expected sales of 400,000 to 800,000 tonnes.

Argentina's government said on Thursday it would review a decision to temporarily suspend corn exports after a meeting between the farming minister and the leaders of the country's main agricultural associations.

The union representing Argentine port-side grain inspectors said on Thursday it had ended a month-long wage strike after reaching a contract deal with export companies that will allow international soy, corn and wheat shipments to return to normal.

Commodity funds were net sellers of CBOT soybean, corn, wheat, soymeal and soyoil futures contracts on Thursday, traders said.