Sunday, October 17

Corn steady near four-week high ahead of US stocks data

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PARIS/SINGAPORE — Chicago corn futures edged up on

Thursday to hold near a four-week high as traders awaited widely followed US

grain stocks data expected to show tightening corn inventories.

Soybeans and wheat were also firm, with strength in international oilseed

and cereal markets helping offset pressure from a rising dollar.

Price moves were limited ahead of the US Department of Agriculture’s

(USDA) quarterly grain stocks report at 1600 GMT.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was


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up 0.3% at $5.40-1/2 per bushel by 1136 GMT, trading close to Tuesday’s

four-week peak of $5.41-3/4.

“The report should show a substantial, but unsurprising, rundown in US

(corn) inventory,” said Tobin Gorey, director of agricultural strategy at

Commonwealth Bank of Australia.

The report comes as the market has been assessing early yield reports from

the US harvest, seen as crucial to replenish global supplies after a poor

Brazilian crop and brisk Chinese demand in the past year.

Analysts surveyed by Reuters expect the USDA to peg US corn stocks at the

end of Sept. 1 at 1.155 billion bushels, down from 1.187 billion in a USDA

supply and demand report earlier in September.

Analysts estimate soybean stocks at 174 million bushels, close to the USDA’s


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last forecast of 175 million bushels.

CBOT soybeans were up 0.1% at $12.85-1/2 a bushel, while wheat

added 0.7% to $7.15-1/4 a bushel.

The USDA is expected to trim its estimate for the US 2021 wheat crop in a

separate report to be issued alongside the stocks data.

Wheat markets have also been supported by brisk importer demand and rising

physical prices.

Traders will get a demand update on Thursday via weekly US export sales


Grain markets expect US exports to pick up after recent storm disruption,

but there remains uncertainty around the level of Chinese demand.

China’s huge livestock sector is facing a hike in feed costs as power

outages force soybean crushing plants to close, analysts and industry


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participants said.

Prices at 1136 GMT

Last Change Pct End 2020 Ytd Pct

Move Move

CBOT wheat 715.25 5.00 0.70 640.50 11.67

CBOT corn 540.50 1.50 0.28 484.00 11.67

CBOT soy 1285.50 1.75 0.14 1311.00 -1.95

Paris wheat Dec 256.75 0.75 0.29 192.50 33.38

Paris maize Nov 231.75 1.75 0.76 219.00 5.82

Paris rape Nov 647.25 1.00 0.15 418.25 54.75

WTI crude oil 74.65 -0.18 -0.24 48.52 53.85

Euro/dlr 1.16 0.00 -0.17 1.2100 -4.34

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Subhranshu Sahu and David Evans)


In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.


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