AIRLINK 61.60 Decreased By ▼ -0.88 (-1.41%)
BOP 5.34 Decreased By ▼ -0.02 (-0.37%)
CNERGY 4.50 Decreased By ▼ -0.08 (-1.75%)
DFML 15.40 Decreased By ▼ -0.10 (-0.65%)
DGKC 65.75 Decreased By ▼ -0.65 (-0.98%)
FCCL 17.19 Decreased By ▼ -0.40 (-2.27%)
FFBL 27.60 Decreased By ▼ -0.10 (-0.36%)
FFL 9.25 Decreased By ▼ -0.02 (-0.22%)
GGL 10.04 Decreased By ▼ -0.02 (-0.2%)
HBL 105.00 Decreased By ▼ -0.70 (-0.66%)
HUBC 121.13 Decreased By ▼ -1.17 (-0.96%)
HUMNL 6.51 Decreased By ▼ -0.09 (-1.36%)
KEL 4.40 Decreased By ▼ -0.10 (-2.22%)
KOSM 4.35 Decreased By ▼ -0.13 (-2.9%)
MLCF 35.66 Decreased By ▼ -0.54 (-1.49%)
OGDC 122.40 Decreased By ▼ -0.52 (-0.42%)
PAEL 22.65 Decreased By ▼ -0.35 (-1.52%)
PIAA 30.95 Increased By ▲ 1.61 (5.49%)
PIBTL 5.82 Increased By ▲ 0.02 (0.34%)
PPL 106.75 Decreased By ▼ -0.75 (-0.7%)
PRL 27.19 Decreased By ▼ -0.06 (-0.22%)
PTC 17.46 Decreased By ▼ -0.61 (-3.38%)
SEARL 52.74 Decreased By ▼ -0.26 (-0.49%)
SNGP 62.70 Decreased By ▼ -0.51 (-0.81%)
SSGC 10.55 Decreased By ▼ -0.25 (-2.31%)
TELE 9.01 Decreased By ▼ -0.19 (-2.07%)
TPLP 11.50 Increased By ▲ 0.06 (0.52%)
TRG 70.21 Decreased By ▼ -0.65 (-0.92%)
UNITY 23.62 No Change ▼ 0.00 (0%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,920 Decreased By -23.3 (-0.33%)
BR30 22,636 Decreased By -190.7 (-0.84%)
KSE100 66,938 Decreased By -203.7 (-0.3%)
KSE30 22,025 Decreased By -64.7 (-0.29%)
Markets

Corn, soybeans steady near 6-year highs as South America in focus

  • South America dryness, disrupted Argentine exports fuelled rally.
  • Forecast rain in S. America, slower US exports curb upside.
  • Attention turning to Jan. 12 USDA world crop report.
  • Wheat also firm near 6-year top.
Published January 8, 2021

PARIS/SINGAPORE: Chicago corn and soybeans edged up on Friday to trade near 6-1/2 year highs as the grain market continued to assess supply risks in South America due to dry growing conditions and disruption to Argentine shipments.

Rain forecast in Brazil and Argentina and slower US exports last week were limiting price gains as investors also looked ahead to world crop forecasts from the US government next Tuesday, analysts said.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.8% at $4.98 a bushel by 1148 GMT, approaching the psychological $5 threshold again after reaching a highest since May 2014 at $5.02-3/4 on Wednesday.

CBOT soybeans were up 1.1% at $13.70-3/4, after this week hitting their highest since June 2014 at $13.78-1/4.

"The market is looking for more fuel for the bulls," Michael Magdovitz, commodity analyst at Rabobank, said.

"Weather is critical and we're not in a drought situation I would see as catastrophic in South America."

Traders are watching to see if significant rainfall reaches dry parts of Argentina and southern Brazil in the coming days, averting further loss of corn and soybean yield potential.

Argentina's government said on Thursday it would review a decision to temporarily suspend corn exports, a restriction that fanned the recent price rally.

Also on Thursday, the union representing Argentine port-side grain inspectors said it had ended a month-long wage strike that has disrupted grain shipments.

Lower weekly US exports sales, particularly in soybeans, reported by the US Department of Agriculture on Thursday cooled the futures rally by suggesting high prices were curbing demand.

CBOT wheat rose with support from corn and soy, adding 0.9% to $6.47-3/4 to move back towards Tuesday's six-year peak of $6.64-1/2.

Traders were waiting for activity in Russia to resume following holidays this week to gauge the impact of measures to curb the country's exports.

Comments

Comments are closed.