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Wednesday, February 3, 2021

Corn falls after six-session gain - Successful Farming

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* Corn lower but supported by continued daily exports

* Soybeans fall as firm dollar encourages consolidation

* Wheat eases Egypt tender favors Russian wheat, despite export tax

By Christopher Walljasper

CHICAGO, Feb 2 (Reuters) - U.S. corn futures eased on Tuesday after six sessions of gains, as the market watched to see if a surge in Chinese demand would continue to erode U.S. supplies.

Soybeans also fell as traders assessed upcoming Brazilian exports against risks that rainfall will slow harvest work.

Wheat followed corn and soybeans lower, all pressured by a firming U.S. dollar, which reached its highest in nearly two months against other major currencies.

The most active corn futures on the Chicago Board Of Trade ended 6-1/4 cents lower at $5.43 per bushel.

CBOT soybean futures fell 10-1/2 cents to $13.54-3/4 per bushel. Wheat slipped 6-1/4 cents to $6.44-3/4 per bushel.

After the U.S. Department of Agriculture last week reported massive sales of U.S. corn to China, traders are looking ahead to next week's monthly supply and demand report from the agency to see the impact of recent exports on U.S. corn stockpiles.

"You’ve had this massive sales pace that’s taken place in the last eight days. It’ll be a historic number coming in," said Mark Schultz, chief analyst at Northstar Commodity.

Meanwhile, soybeans fell as traders assessed the dampening impact of a stronger U.S. dollar on exports.

"The U.S. dollar rallying will do just as much rationing as if you saw commodity values rallying," said Karl Setzer, commodity risk analyst at Agrivisor.

Global corn and soybean supply continues to be threatened by disruptions in Argentina, as truck drivers set up roadblocks near key export terminals to protest taxes, tolls and fuel prices.

Despite Russia's export tax, top wheat importer Egypt bought 120,000 tonnes of Russian wheat for shipment March 15-30, in addition to purchases from France, Ukraine and Romania totalling 480,000 tonnes. (Reporting by Christopher Walljasper; Additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Editing by Cynthia Osterman)

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February 03, 2021 at 04:06AM
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Corn falls after six-session gain - Successful Farming

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