GRAINS-Corn eases from 8-year peak, market eyes USDA supply-demand report
Adds continued price weakness in European trade, comment
By Naveen Thukral and Michael Hogan
SINGAPORE/HAMBURG, May 10 (Reuters) - Chicago corn futures fell on Monday as the market took a breather after a rally to eight-year highs on Friday with traders focusing on this week's U.S. world supply-demand report for new price direction.
Wheat and soybeans also fell from recent highs.
Chicago Board of Trade most active corn Cv1 fell 0.9% to $7.25-1/2 a bushel at 0938 GMT. Corn on Friday hit its highest since March 2013 on concerns about tight global supplies.
Wheat Wv1 fell 1.5% to $7.50 a bushel. Soybeans Sv1 dropped 0.4% to $15.83 a bushel after hitting their highest since October 2012 on Friday.
"Chicago corn prices have jumped and now the market is waiting to see the demand-and-supply situation," said Phin Ziebell, agribusiness economist at National Australia Bank. "There is reduction in demand from the animal feed sector at these price levels."
The U.S. Department of Agriculture (USDA) should issue its world supply/demand report on Wednesday.
In its first estimates for the 2021/22 season, the USDA is expected to predict U.S. soybean ending stocks will remain tight at 138 million bushels, said a Reuters poll of analysts.
"The tight situation on the markets, which has driven prices to eight-year highs, is thus set to improve only slightly," Commerzbank said.
Traders said high corn prices could transfer more buying to animal feed wheat.
South Korea's Feed Leaders Committee (FLC) purchased about 60,000 tonnes of animal feed wheat expected to be sourced from the Black Sea region in a private deal. nL8N2MX1NP
China's purchases of corn and soybeans underpinned prices recently.
Chinese importers bought 1.36 million tonnes of U.S. corn, the USDA said on Friday. nL1N2MU16I
China's 2021 corn output is forecast to rise 4.3% on the year to 272 million tonnes, a government think tank said on Friday, in the first estimate by an official agency for this year's crop. nL1N2MU0BN
(Reporting by Michael Hogan and Naveen Thukral, editing by Ed Osmond)