U.S. grains: Corn steps back after export-led rally

Wheat nears three-month low on better U.S. weather; soyoil pulls soybeans higher

CBOT May 2021 corn with Bollinger (20,2) bands. (Barchart)

Chicago | Reuters — Chicago corn futures dipped on Monday as improving South American crop weather added pressure to prices after export sales on Friday rallied the market.

Soybeans were lifted by rallying soyoil futures, while wheat closed barely higher as favourable planting weather in the U.S. Great Plains and the Black Sea region limited gains.

Chicago Board of Trade most-active corn ended 8-3/4 cents lower at $5.49 per bushel (all figures US$).

Soybeans ended 1-1/4 cents higher at $14.17-1/2 per bushel. Wheat gained 1/4 cent to finish at $6.27-1/4 per bushel, after dipping to $6.21-1/4 overnight, its lowest since Dec. 30.

Corn pulled back from last week’s export-inspired rally as rains improved crop prospects in Argentina, but prices remained near recent highs as analysts await the U.S. Department of Agriculture’s quarterly stocks and annual planting intentions report on March 31.

“The corn fell out of bed, with the rains in Argentina,” said Mark Gold, managing partner at Top Third Ag Marketing. “Weather around the world has certainly improved.”

Soybeans were supported by May soyoil, which climbed 2.5 cents to 56.37 cents/lb., notching a new life-of-contract high. Most-active soyoil touched its highest price since September 2012.

Gains in soybeans were muted by Brazil’s progressing harvest, analysts said, though rains have slowed Brazilian exports to top importer China.

CBOT wheat, meanwhile, faced downward pressure from crop-friendly rain in the United States and the Black Sea region.

“A little oversold on the wheat, but it’s going to be tough to rally the market with the type of moisture that’s been falling in Kansas,” said Jeff French, owner at Ag Hedgers.

Ukrainian wheat export prices have fallen about $7 a tonne over the past week on improved harvest forecasts in the country and a drop in Russian wheat prices, the APK-Inform agriculture consultancy said on Sunday.

— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.

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