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GRAINS-Soybeans at near 9-year high on tightening supplies; wheat, corn up 1%

GRAINS-Soybeans at near 9-year high on tightening supplies; wheat, corn up 1%

05/11/2021 22:42
GRAINS-Soybeans at near 9-year high on tightening supplies; wheat, corn up 1%

Soybeans at 9-year top in positioning ahead of key U.S. report

Wheat up 1%, gains for 2nd session; corn trades near highest since 2013

Recasts, adds quote in paragraphs 3-4, fund positioning

By Naveen Thukral

- Chicago soybeans climbed more than 1% on Wednesday to their highest in nearly nine years, as shrinking global feed grain supplies and positioning ahead of a key U.S. supply-demand report due later in the day underpinned prices.

Wheat and corn futures rose around 1%, with both markets gaining for a second straight session.

"The bullish trend remains in place and tightening global supplies are in focus ahead of the USDA (U.S. Department of Agriculture) report," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

"No one wants to be caught short before the USDA report."

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 1.3% to $16.36 a bushel, as of 0223 GMT, after hitting its highest since September 2012 at $16.39 a bushel earlier in the session.

Wheat Wv1 rose 0.9% to $7.48-1/2 a bushel and corn Cv1 added 0.9% to $7.28-1/2 a bushel.

Tightening corn supplies should affect competing feedstuffs as well, including soybean meal.

Traders await Wednesday's World Agricultural Supply and Demand Estimates (WASDE) report, in which the USDA will give its first global outlook for 2021/22 and update its 2020/21 estimates. nL1N2MX1P2

Analysts surveyed by Reuters on average expected the USDA to lower its estimate of Brazil's 2020/21 corn production to 103.5 million tonnes, from 109 million tonnes in April. Others fear the figure ultimately could fall below 100 million tonnes, curbing exportable supplies.

Brazilian agribusiness consultancy AgRural on Monday cut its production estimate for Brazil's second corn crop in the Center South region due to a prolonged drought that worsened in the first week of May.

Farmers there are now expected to reap 65.1 million tonnes of second corn, down from 73 million tonnes estimated on April 19, according to a statement.

Commodity funds were net buyers of CBOT soybean, corn, soymeal, wheat and soyoil futures contracts on Tuesday, traders said. COMFUND/CBT

(Reporting by Naveen Thukral; Editing by Rashmi Aich)

(([email protected]; +65-6870-3829; Reuters Messaging: [email protected]))