Company News

GRAINS-Soybeans at four-year high as demand and weather keep market bubbling

    * Soybeans at highest since June 2016, up 12% this month 
    * Strong Chinese demand and dry South American weather support
    * Corn hits highest since July 2019, wheat steady

 (Updates with European trading, changes byline/dateline)
    By Gus Trompiz and Naveen Thukral
    PARIS/SINGAPORE, Nov 20 (Reuters) - Chicago soybeans rose for a sixth
consecutive session on Friday to a four-year high as robust Chinese demand and a
dry start to the South American growing season fuelled expectations of dwindling
U.S. supplies.
    Corn rose to another one-year peak, similarly buoyed by brisk exports and
weather risks in other exporting countries.
    The most active soybean contract on the Chicago Board Of Trade (CBOT)
was up 1% at $11.89-3/4 a bushel by 1053 GMT, having touched the latest in a
series of multi-year highs at $11.92-3/4.
    The contract has gained more than 12% this month.
    "There is a scarcity concern in the market this year," said Rabobank
commodity analyst Michael Magdovitz.
    "We're getting into the period when there is a higher moisture requirement
for the Brazilian crop and when there is not so much U.S. crop left to be sold."
    While some rain has reached Brazilian and Argentine grain belts, more
moisture was seen as needed to complete soybean and corn planting and boost crop
    Argentine soy planting advanced sharply over the past week after rains in
key drought-hit areas, the Buenos Aires Grains Exchange said on Thursday, though
much of the country remained dry.
    Recent dryness in Brazil has also raised doubts over how large a crop the
world's biggest soybean exporter can harvest in the coming months.
    "There are increasing supply concerns and feed demand is really strong as
China is rebuilding its pig herd," said Phin Ziebell, an agribusiness economist
at National Australia Bank.
    Weekly U.S. Department of Agriculture (USDA) export data on Thursday showed
soybean and corn export sales above trade expectations.
    CBOT corn was up 1.2% at $4.32-1/2 after earlier touching its highest
since July 2019 at $4.33-1/4. 
    Wheat added 0.4% to $6.01-1/4.
    The arrival of a bumper Australian crop and moisture for parched U.S. wheat
crops have curbed wheat prices, though brisk demand was underpinning the market,
analysts said.
 Prices at 1053 GMT                                                 
                                Last  Change    Pct     End  Ytd Pct
                                               Move    2019     Move
  CBOT wheat                  601.25    2.50   0.42  558.75     7.61
  CBOT corn                   432.50    5.25   1.23  387.75    11.54
  CBOT soy                   1189.25   11.75   1.00  955.50    24.46
  Paris wheat Dec             210.75    0.25   0.12  188.75    11.66
  Paris maize Jan             193.25    0.50   0.26  179.00     7.96
  Paris rape Feb              416.00    1.50   0.36  391.75     6.19
  WTI crude oil                42.01    0.27   0.65   61.06   -31.20
  Euro/dlr                      1.19    0.00  -0.16  1.1210     5.74
 Most active contracts - Wheat, corn and soy US cents/bushel, Paris
 futures in euros per tonne

 (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore
Editing by Sherry Jacob-Phillips and David Goodman