GRAINS-Soybeans hit 6-1/2-year high on supply concerns

SINGAPORE, Jan 11 (Reuters) – Chicago soybean futures rose
for a second straight session on Monday to hit their highest in
6-1/2 years, as tightening supplies and strong Chinese demand
continued to support prices.
Corn gained more ground while wheat bounced back.

FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of
Trade (CBOT) was up 0.9% to $13.86-1/2 a bushel, as of
0112 GMT. Earlier in the session, the market jumped to its
highest since June 2014 at $13.88 a bushel.
* Corn added 0.8% to $5.00 a bushel, while wheat
rose 0.1% to $6.39-1/4 a bushel after three straight sessions of
falls.
* Soybeans rose on expectations that the U.S. Department of
Agriculture (USDA) in its monthly supply/demand reports due on
Jan. 12 will tighten its forecasts of U.S. soy and corn ending
stocks – the amount left at the end of the 2020/21 marketing
year on Aug. 31, 2021, and carried over into the next marketing
year.
* Some analysts expect the USDA to trim its estimates of the
2020 U.S. corn and soybean harvests as well.
* Soybeans are drawing further support from news that the
USDA confirmed private sales of 204,000 tonnes of U.S. soybeans
to China. It was the first sale to China announced through the
agency’s daily reporting system since Nov. 6.
* Traders continue to monitor South American crop weather,
watching to see if significant rainfall reaches dry parts of
Argentina and southern Brazil in the coming days, averting
further loss of corn and soybean yield potential.
* Argentina’s new corn crop urgently needs rain to avoid
yield drops in the main agricultural region of the South
American country, where 65% of planted area is suffering from a
severe drought, the Rosario grains exchange said in a report on
Friday.
* Large speculators raised their net long position in CBOT
corn futures in the week to Jan. 5, regulatory data released on
Friday showed.
* The Commodity Futures Trading Commission’s weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, trimmed their net
short position in CBOT wheat and cut their net long position in
soybeans.

MARKET NEWS
Asian shares took a breather on Monday while Treasury yields
were at 10-month highs as “trillions” in new U.S. fiscal
stimulus plans were set to be unveiled this week, stoking a
global reflation trade.

DATA/EVENTS (GMT)
0030 Australia Retail Sales MM Final Nov
0130 China PPI, CPI YY Dec

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

https://www.agriculture.com/markets/newswire/grains-soybeans-hit-6-12-year-high-on-supply-concerns