GRAINS-Corn and soybeans ease from highs, eyes are on South America weather

ReutersJan 3, 2025 12:30 PM

Corn off 6-month peak, beans ease from 7-week top

Dry outlook in Argentina, south Brazil raises supply risks

Wheat eases further as dollar strength adds to export challenge

Updates at 1015 GMT, changes byline, dateline

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Jan 3 (Reuters) - Chicago corn and soybean futures edged down on Friday, consolidating after a rally fuelled by a dry outlook for some South American crops.

Wheat eased as a day-earlier jump in the dollar =USD to a two-year peak weighed on demand sentiment while traders awaited weekly U.S. export sales figures later on Friday. The dollar index fell back on Friday. FRX/

The most-active corn contract Cv1 on the Chicago Board of Trade (CBOT) was down 0.5% at $4.57-1/4 a bushel by 1210 GMT, after earlier equalling Thursday's peak of $4.59-3/4 that was the highest level since mid-June.

CBOT soybeans Sv1 were 0.6% lower at $10.05-3/4 a bushel, after hitting a seven-week top at $10.15-3/4 on Thursday.

CBOT wheat was down 0.6% at $5.42-1/4 a bushel.

An easing in crude oil LCOc1 after a two-month high at Thursday's close also encouraged grains to consolidate. O/R

The risk of parched conditions in Argentina, as well as southern Brazil, in the coming weeks has tempered optimism about South American corn and soybean supply after forecasters projected a record soy crop in Brazil.

"The good rains that have fallen in recent days in the Cordoba region of Argentina remained too localized," Argus analysts said. "While the forecast of very hot and very dry weather persists (for the coming) 10 days over the country's major production regions."

At the same time, Brazil's 2024-2025 soybean crop is expected to reach a record 171.4 million metric tons, consultancy firm StoneX said on Thursday, increasing its forecast from the 166.2 million tons estimated in December.

The wheat market drew some support at the end of last year from the corn rally and uncertainty over Russia amid poor early growth for crops, rising local prices and steps by the authorities to curb exports.

But the dollar's strength has underscored export competition both from Black Sea supplies like Russian wheat and from newly harvested southern hemisphere crops.

Prices at 1210 GMT
	Last	Change	Pct Move
CBOT wheat Wv1	542.25	-3.50	-0.64
CBOT corn Cv1	457.25	-2.25	-0.49
CBOT soy Sv1	1005.75	-6.25	-0.62
Paris wheat BL2H5	236.00	-3.25	-1.36
Paris maize EMAc1	211.75	-1.00	-0.47
Paris rapeseed COMc1	517.00	-7.25	-1.38
WTI crude oil CLc1	73.06	-0.07	-0.10
Euro/dlr EUR=	1.03	0.00	0.30
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Varun H K and Sonia Cheema)

((gus.trompiz@thomsonreuters.com))

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