CHICAGO: Chicago corn futures fell on Monday, pausing after rallying to eight-year highs last week, with traders focusing on the US Agriculture Department’s upcoming world supply-demand report for new price direction.
Wheat dipped, supported by beneficial rains across the US Great Plains, while soyabeans traded mixed on continued tight supplies.
Chicago Board of Trade most active corn fell to 16-1/4 cents to $7.16 a bushel by 11:19 a.m. (1719 GMT).
Wheat fell 29 cents to $7.32-3/4 a bushel. Soyabeans lost 4-1/4 cents to $15.85-1/2 a bushel.
After CBOT corn reached its highest since March 2013 on Friday, the market stepped back, with rainfall across the US Midwest and strong planting progress adding pressure, traders said. US farmers are expected to have planted 67% of planned corn acres and 40% of planned soyabeans acres, as of May 9, according to a Reuters poll of analysts.
The US Department of Agriculture is set to issue its first supply and demand estimates for the 2021/22 season on Wednesday, likely predicting continued tightness in US soyabean ending stocks.
China’s corn purchases have underpinned prices recently, with importers buying another 1.02 million tonnes of new-crop corn on Monday, while cancelling 280,000 tonnes of old-crop purchases, the USDA said.
Pressure in the wheat market was driven by beneficial rainfall across the US Great Plains and Europe.
“Conditions of the winter wheat crop are good. I think the spring wheat areas are going to be improving,” Fritz said. “We’re going to have some decent wheat crops this year.”
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