* Corn extends prior gains on tight stocks
* Soybeans rise again on low acreage
* China demand may tighten corn stocks
* Wheat retraces some prior gains
(Writes through, pvs SINGAPORE)
By Martin Roberts
MADRID, April 2 (Reuters) – Benchmark global soybean prices
rose to near six-month highs on Monday and corn posted strong
gains on continuing momentum from a U.S. government report of
surprisingly low stockpiles and planting intentions.
Wheat was meanwhile little changed on the Chicago Board of
Trade after the market had digested Friday’s U.S. Department of
Agriculture estimates on Friday of bullish wheat stocks and
acreage planted by U.S. farmers.
The USDA predicted farmers in the world’s top soybean
producer, the United States, would plant 2 percent less to the
oilseed than expected.
“One particular surprise is the reduction in acreage
for soybeans given that the sharp increase in price makes
growing soybeans more profitable,” Germany’s Commerzbank said in
a research report.
That suggested supplies would be tightened further after
poor harvests due to drought in Brazil and Argentina, the
world’s second- and third-largest soy producers, which has
driven soy prices this year.
In its quarterly stocks report, the USDA’s tally of corn
stocks was also below expectations and the lowest in five years,
although farmers were set to sow more land to corn than they had
since 1937.
“There was more expectation in the market of the wheat
numbers,” said Chris Gadd, a grains analyst with Macquarie in
London.
“Everyone was expecting the report to be bullish for wheat,
so there’s not as much rationale for a rally, but the market was
surprised by lower corn stocks and lower plantings for soya
beans as well.”
CBOT corn for May delivery climbed 1.2 percent to
$6.51-3/4 a bushel by 0942 GMT, while May soybeans rose
0.84 percent to $14.14-3/4 a bushel, which compares with a
six-month high of $14.16 a bushel reached on Friday.
New crop December corn posted more modest gains of
0.32 percent due to the bearish USDA planting estimates.
Wheat shed 0.04 percent to $6.60-1/2 a bushel,
retracing some of the 8-percent gain it posted after the USDA
report on Friday.
French analyst Agritel noted that demand from China could
tighten corn supplies even more.
“Chinese purchases of corn would also dictate the end of the
season in a context of tight stocks that will be, in August
2012, below the psychological threshold of 800 million
bushels,” Agritel said.
Benchmark European may milling wheat futures meanwhile
traded up 0.47 percent to 213.75 euros ($284.66) a tonne
on the Euronext exchange in Paris.
Financial markets in general drew support on Monday after
surprisingly strong Chinese factory activity data eased fears
about a hard landing in the world’s No. 2 economy.
A weaker U.S. dollar helped agricultural commodities priced
in greenbacks by making them cheaper on world markets, a factor
which helped U.S. exporters win business last week from Egypt,
the world’s biggest wheat buyer.
Prices at 1052 GMT
Product Last Change Pct Move End 2011 Ytd Pct
Paris wheat 213.75 1.00 +0.47 195.25 9.48
London wheat 174.50 -0.25 -0.14 153.65 13.57
Paris maize 215.00 0.50 +0.23 197.25 9.00
Paris rape 494.25 3.50 +0.71 421.50 17.26
CBOT wheat 658.00 -2.75 -0.42 671.25 -1.97
CBOT corn 651.50 7.50 +1.16 654.75 -0.50
CBOT soybeans 1414.75 11.75 +0.84 1207.75 17.14
Crude oil 102.51 -0.51 -0.50 98.83 3.72
Euro/dlr 1.33 0.00 +0.04 1.30 3.03
* All grain and oilseed prices for second position. Paris
futures prices in Euros per tonne, London wheat in pounds per
tonne and CBOT in cents per bushel.
($1 = 0.7509 euros)
(Editing by Keiron Henderson)
