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GRAINS-Soybeans rebound on hopes of strong demand, corn near 2013 high

· 02/07/2021 22:27
GRAINS-Soybeans rebound on hopes of strong demand, corn near 2013 high

Soybeans up for 3 out of 4 sessions on strong Chinese demand

Corn futures near 7-1/2 year high, wheat gains more ground

Adds quote in paragraph 3-4, fund positioning; updates prices

By Naveen Thukral

- Chicago soybean futures rose on Monday, gaining for three out of four sessions, boosted by expectations of strong demand led by top buyer China.

Corn edged close to a seven-and-a-half-year high, while wheat rose for a second session.

"Chinese demand is the big story in grains and oilseeds which has been supporting prices," said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne.

"There are no major worries about supplies, so the upside from current levels is limited."

The most-active soybean contract on the Chicago Board Of Trade (CBOT) Sv1 rose 0.4% to $13.71-1/2 a bushel, as of 0254 GMT, after closing down 0.4% in the previous session.

Corn Cv1 gained 0.4% at $5.50-1/2 a bushel. The market hit a June 2013 high of $5.58 a bushel last week. Wheat Wv1 gained 0.6% at $6.45-1/4 a bushel, after ending higher by a similar amount on Friday.

Expected record Chinese imports of corn and soybeans in the coming seasons will continue to absorb U.S. supplies and keep prices on an upward trend, Chicago-based consultancy AgResource Co said. nL8N2K24GF

Market is eyeing the U.S. Department of Agriculture (USDA) supply and demand report later this week, which is likely to confirm tightening stocks of soybeans and corn.

The USDA reported daily export sales of 101,600 tonnes for delivery to unknown destinations during the 2020/2021 marketing year. nFWN2KB1F4

Rain has slowed Brazil's soybean harvest and subsequent second corn crop planting, but forecasters still expect bumper crops.

In Argentina, the Buenos Aires Grains Exchange on Thursday cut its 2020/21 corn crop forecast by 1 million tonnes to 46 million tonnes, citing lower-than-expected yields caused by dry weather. nL1N2KA2BT

Large speculators cut their net long position in CBOT corn futures in the week to Feb. 2, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.

(Reporting by Naveen Thukral; Editing by Amy Caren Daniel)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.))