CHICAGO, Jan 30 (Reuters) – U.S. corn futures jumped 1.5
percent on Thursday, heading for their largest gains in about
three weeks after government data showed larger-than-expected
export sales, analysts said.
Soybean and wheat also rose at the Chicago Board of Trade,
rebounding from recent lows amid strong weekly export sales
results for the crops in a U.S. Agriculture Department report.
CBOT March corn gained 6-1/2 cents to $4.34 per
bushel, touching the highest level in two weeks and closing in
on their first two-month streak of gains in 1-1/2 years.
“We were the cheapest corn in the world, just below Ukraine,
and it certainly showed up in the export sales,” said U.S.
Commodities analyst Don Roose. “Bull spreads have been working
on corn, so the market told you we were fighting for value.”
U.S. exporters sold 1.8 million tonnes of corn last week,
the largest amount in the current 2013/14 marketing season. Top
global corn buyer Japan purchased 797,800 tonnes of the grain,
USDA data showed.
The dip in prices earlier this month to the lowest level in
3-1/2 years has made corn more competitive in global markets
even as the strong demand has lifted futures by more than 6
percent since hitting the low watermark on Jan. 10.
“We’re in a market that’s moving to the top of the trading
range – there’s a little resistance all the way,” Roose added.
Corn futures hit a session high of $4.34-1/2 before hitting
resistance at their 100-day moving average.
CBOT March soybeans were 11-1/2 cents higher at
$12.80-3/4 per bushel, a gain of 0.9 percent after earlier
trading as low as $12.60. CBOT March wheat firmed by 3-3/4
cents to $5.55-1/4 as of 10:38 a.m. CST (1638 GMT).
U.S. soybean exports of 494,800 tonnes were below analyst
expectations in a Reuters poll but some traders were bracing for
a net negative result as importers “switch” supplies to Brazil.
The surge in corn futures coupled with the positive export
results helped lift soy futures from their 2-1/2 month low
notched early in the trading session amid harvest in Brazil.
“We are going to see increasing availability of South
American (soy) supplies in the coming weeks which is going to
relieve the near-term supply tightness,” said Luke Mathews,
commodities strategist at the Commonwealth Bank of Australia.
In Brazil, strong yields in the country’s top soy-growing
state Mato Grosso should guarantee a record harvest for the
country in the 2013/14 crop year.
The U.S. Department of Agriculture attache in Brazil on
Tuesday estimated the 2013/14 soybean crop there at 89.5 million
tonnes, above the USDA’s official forecast of 89 million tonnes
and sharply up from 81.6 million tonnes last year.
U.S. exports of all varieties of wheat totalled 794,900
tonnes, the largest since September and above the high end of
analyst estimates that ranged from 300,000 to 500,000 tonnes.
Prices at 10:38 a.m. CST (1638 GMT)
LAST NET PCT YTD
CHG CHG CHG
CBOT corn 434.00 6.50 1.5% 2.8%
CBOT soy 1280.75 11.50 0.9% -2.4%
CBOT meal 426.90 3.60 0.9% -2.5%
CBOT soyoil 37.14 0.04 0.1% -4.3%
CBOT wheat 555.25 3.75 0.7% -8.3%
CBOT rice 1546.00 1.00 0.1% -0.3%
EU wheat 190.00 0.00 0.0% -9.1%
US crude 98.36 1 1.0% -0.1%
Dow Jones 15,842 103 0.7% -4.4%
Gold 1240.65 -27.14 -2.1% 2.9%
Euro/dollar 1.3548 -0.0114 -0.8% -0.8%
Dollar Index 81.1030 0.5980 0.7% 1.3%
Baltic Freight 1127 -21 -1.8% -50.5%