Corn gains for fifth session on global supply worries, wheat eases

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SINGAPORE — Chicago corn futures gained more ground on Wednesday to trade near a more than eight-year high hit in the previous session, as concerns over global supplies and strong demand underpinned prices.

Wheat slid while soybeans edged higher.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.3% to $6.99 a bushel as of 0015 GMT. On Tuesday, the market reached $7.04 a bushel, its highest level since March 2013.

* Wheat lost 0.2% to $7.25 a bushel and soybeans rose 0.3% to $15.42-1/4 a bushel.

* In Brazil, weather forecasts showed little sign of rain relief for dry southern corn-growing areas, keeping the focus on global supply woes despite U.S. planting progress.

* Brazil’s second annual crop is seen as crucial to boosting short-term availability ahead of the U.S. harvest later in the year.

* Brazilian soybean exports in May are likely to fall after setting a monthly record in April due to the absence of Chinese buyers, according to an agribusiness analyst and data from a maritime agent.

* China is being more cautious after soybean prices in Chicago touched an eight-year high.

* Argentina’s 2021/22 wheat crop is expected at 19 million tonnes, equal to the country’s record-setting harvest in the 2018/19 season, the Buenos Aires Grains Exchange said in a preliminary forecast on Tuesday.

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* Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Tuesday, traders said. Estimates for buying in corn were wide, ranging from 5,000 contracts to 40,000 contracts.

MARKET NEWS

* World equity indexes slid and U.S. Treasury yields fell on Tuesday as low trading volume, a lull in economic news and lack of a catalyst to lift stocks higher sparked a sell-off by investors worried further upside in markets is limited.

DATA/EVENTS (GMT, April) 0750 France Markit Serv, Comp PMIs 0755 Germany Markit Services PMI 0755 Germany Markit Comp Final PMI 0800 EU Markit Serv, Comp Final PMIs 1345 US Markit Serv, Comp Final PMIs 1400 US ISM N-Mfg PMI (Reporting by Naveen Thukral; Editing by Rashmi Aich)