Corn falls nearly 1% ahead of USDA report, supply crunch keep prices near 8-yr peak

PUBLISHED: Mon, 10 May 2021 10:03:03 GMT
Colin Packham
Reuters
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 U.S. corn futures fell for the first time in more than a week on Monday, as traders squared positions ahead of a widely watched U.S. government report, though concerns over tight global supplies kept prices around a more than 8-year high.

FUNDAMENTALS

* The most-active corn futures on the Chicago Board of Trade were down 0.8% at $7.26-1/4 a bushel by 0124 GMT, after closing up 1.9% on Friday when prices hit a March 2013 high of $7.34-1/4 a bushel.

* The most active soybean futures fell 0.3% to $15.84-1/2 a bushel, after closing up 1.3% in the previous session when prices hit a October 2012 high of $15.99-1/2 a bushel.

* The most active wheat futures fell 1% to $7.53-1/4 a bushel, after closing up 1.2% in the previous session.

* Market eyes the U.S. Department of Agriculture’s (USDA) first 2021/22 report.

* The USDA is expected to predict U.S. soybean ending stocks will remain tight at 138 million bushels, according to a Reuters poll of analysts.

* They projected the agency will reduce its 2020/21 stocks estimate to 117 million bushels from 120 million.

* Chinese importers bought 1.36 million tonnes of U.S. corn that will be shipped during the 2021/22 marketing year, which starts in September, according to USDA.

MARKET NEWS

The dollar languished near a more than two-month low versus major peers, as investors continued to assess the implications for monetary policy of a disappointing U.S. employment report, ahead of inflation data this week.

* Crude prices climbed more than 1%, after a major cyber attack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.

* Stocks rose amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while oil prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets.

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