Corn lingers near 8-yr high on supply woes, USDA planting report caps gains

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CANBERRA — U.S. corn futures edged higher on Tuesday, as concerns about global supplies kept prices near an eight-year high, but gains were capped by a widely watched U.S. Department of Agriculture (USDA) report that showed planting ahead of expectations.

FUNDAMENTALS

* The most-active corn futures on the Chicago Board of Trade were up 0.3% at $6.81-1/2 a bushel by 0124 GMT, after closing up 3.9% o Monday when prices hit a March 2013 high of $6.98 a bushel.

* The most active soybean futures rose 0.3% to $15.28-3/4 a bushel, after closing down 0.7% in the previous session.

The most active wheat futures climbed 0.7% to $7.23 a bushel, after closing down 2.3% in the previous session.

* As of Sunday, 46% of the nation’s corn plantings were complete, the USDA said in a weekly report, topping analysts’ expectations of 44%.

* That was up from 17% a week earlier and ahead of the five-year average of 36%.

* In Brazil, the 2020/2021 second corn crop is estimated at 72.7 million tonnes, compared with 77.65 million previously, according to broker StoneX.

* Soybean planting was 24% complete, compared to analysts’ estimates for 25%.

MARKET NEWS

* The dollar retreated after its recent bounce on Monday, as investors made a cautious start to a week crammed with central bank meetings and big-ticket U.S. economic data, waiting for clues on the global inflation outlook and policymakers’ responses

* Oil rose more than 1% on Monday as Chinese economic figures and U.S. vaccination rates pointed to a strong rebound in demand in the world’s two largest economies. (Reporting by Colin Packham; Editing by Rashmi Aich)