Corn at over 7-1/2-year high as US report seen showing tighter supplies

SINGAPORE: Chicago corn futures gained more ground on Tuesday, rising to their highest since June 2013 on expectations that a widely watched US report is expected to show tightening global supplies.

Soybeans climbed to a three-week top, while wheat jumped to its highest level in more than one week.

"We are seeing pretty bullish momentum in agricultural commodities, especially corn," said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities.

"We think the USDA (US Department of Agriculture) would have to cut China's corn stocks and raise imports, so it is likely to be a bullish report overnight."

The most-active corn contract on the Chicago Board Of Trade (CBOT) added 0.5% to $5.66-3/4 a bushel by 0245 GMT, near the session high of $5.68 a bushel - the highest since June 2013.

Soybeans were up 0.7% to $13.96-3/4 a bushel, not far from their Jan. 19 high of $13.98 reached earlier in the session, while wheat gained 0.4% at $6.58-1/2 a bushel, after climbing to Feb. 1 top of $6.59 a bushel.

Analysts polled by Reuters expect the USDA to make further cuts to its end-of-season supply outlooks on Tuesday for corn, soybeans and wheat, while also trimming its harvest views for Brazilian and Argentine corn and soybeans.

Rains in Brazil that have slowed harvesting and transportation of the 2020/2021 soybean crop will continue throughout February, causing potential disruptions in the world's largest producer and exporter of the oilseed, analysts said.

The USDA on Monday reported stronger-than-expected corn export inspections last week, while soybean inspections were near the high end of trade forecasts.

In the wheat market, Russia's move to impose an export tax has been underpinning prices.

The Russian government on Monday approved a formula-based export tax system for wheat, corn and barley that is designed to help combat domestic food price inflation.

The system will come into force on June 2, according to an order signed by Prime Minister Mikhail Mishustin.

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