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Wednesday, February 3, 2021

GRAINS-Corn extends losses; Chinese demand keeps prices near 2013 peak - Successful Farming

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* Corn hit June 2013 high this week

* Soybeans down despite Brazil weather concerns

* Wheat extends losses

By Colin Packham

CANBERRA, Feb 3 (Reuters) - U.S. corn futures edged lower for a second consecutive session on Wednesday as prices retreated from a more than seven-year high, though losses were checked by strong demand.

Soybeans edged lower, despite concerns about production in South America, while wheat also fell.

The most-active corn futures on the Chicago Board Of Trade were down 0.7% at $5.39-1/4 a bushel by 0345 GMT. Corn fell 1.1% on Tuesday, a day after hitting a June 2013 high of $5.54 a bushel.

Despite edging lower, analysts said prices remained underpinned by strong Chinese demand for U.S. supplies.

"There are a few things supporting prices but the biggest (reason), by far, is Chinese demand," said Phin Ziebell, agribusiness economist, National Australia Bank.

The U.S. Department of Agriculture last week reported massive sales of U.S. corn to China, with traders 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.

Argentine grains exports were disrupted by roadblocks set up by truckers around ports in Buenos Aires province, with the protests expected to move north to the country's main shipping hub of Rosario, local industry sources said on Tuesday.

The most-active soybean futures were down 0.6% at $13.47 a bushel, having closed 0.8% lower on Tuesday.

The falls come despite concerns about adverse weather in Brazil, a major exporter.

The most-active wheat futures were down 0.5% at $6.41-1/4 a bushel, having closed down 1% on Tuesday.

Wheat continues to shrug off concerns over tighter global supplies.

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 Colin Packham; Editing by Rashmi Aich)

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February 03, 2021 at 11:11AM
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GRAINS-Corn extends losses; Chinese demand keeps prices near 2013 peak - Successful Farming

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