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GRAINS-Corn edges lower, hovers near 7-1/2-year high on robust Chinese demand

· 02/04/2021 21:34
GRAINS-Corn edges lower, hovers near 7-1/2-year high on robust Chinese demand

- U.S. corn futures edged lower on Friday, though soaring demand from China kept prices near a more than 7-1/2-year high hit in the previous session.

FUNDAMENTALS

* The most-active corn futures on the Chicago Board Of Trade Cv1 were up 0.1% at $5.52-1/2 a bushel by 0222 GMT. Corn rose 0.4% on Thursday, hitting its highest level since June 2013 of $5.58 a bushel.

* Corn little changed for the week, after jumping more than 9% last week.

* The most-active soybean futures Sv1 also flat for the week, after gaining 4% last week.

* The most-active wheat futures Wv1 down more than 4% for the week, after gaining 4% in the previous week.

* U.S. corn export sales reached 7.520 million tonnes in the week ending Jan. 28, according to the U.S. Department of Agriculture (USDA).

* This was the biggest week of sales on record, led by 5.860 million tonnes sold to China, though the market had already absorbed much of those sales when they were announced in daily export notices. nIGB560441

* Brazil's Agriculture Minister Tereza Cristina Dias on Thursday confirmed the government expects to harvest bumper soybean and corn crops despite planting and harvesting delays in 2020. nL1N2KA16A

* Wheat traders also were assessing the latest Russian announcement that the country plans to launch a permanent mechanism to address its wheat export tax on April 1. nL1N2KA0KS

MARKET NEWS

* The dollar headed for its best weekly gain in three months, lifted by growing confidence that the U.S. economic recovery will outpace global peers. USD/

* Oil ticked up on Thursday on strong U.S. economic data, falling inventories and the OPEC+ decision to stick to its output cuts, but a stronger U.S. dollar limited the gains. O/R

* Asian futures were little changed in early trading after progress in vaccine distribution and a large U.S. stimulus program sent two major Wall Street indexes to record closing highs. nL1N2KA3HH




(Reporting by Colin Packham; Editing by Rashmi Aich)

((colin.packham@thomsonreuters.com; +61-2 9321 8161; Reuters Messaging: colin.packham.thomsonreuters.com@reuters.net))