(Reuters) – U.S. corn futures edged lower on Monday after reaching a three-week high in the prior session on strong demand for U.S. cargoes, while wheat steadied after falling more than 2 percent.
Trading in grains and soybeans is likely to be subdued ahead of the release later in the day of the market-moving U.S. Department of Agriculture’s quarterly grain stocks and spring plantings reports.
FUNDAMENTALS
* Chicago Board of Trade corn for May delivery dropped half a percent to $4.89-3/4 a bushel by 0041 GMT after peaking at $4.96-1/4 on Friday. Wheat was little changed at $6.95-1/4.
* U.S. corn sales for the week ended March 20 reached 1.4 million tonnes, well above analysts’ expectations that ranged from 525,000 to 725,000 tonnes.
* The USDA report is forecast to show that U.S. corn stockpiles are at 7.099 billion bushels, the biggest since 2010, and wheat stocks at a five-year low of 1.042 billion bushels, based on a Reuters poll of analysts.
* Wheat fell 2.1 percent on Friday, cutting its weekly gain to a third of a percent, on forecasts for rains in the parched southern U.S. Plains growing regions.
* Soybeans were off 0.1 percent at $14.35 per bushel. Analysts expect Monday’s USDA report to show U.S. soybean stocks by March 1 were 989 million bushels, which would be the smallest since 2004.
* High prices for soybeans should encourage U.S. farmers to sow the biggest ever area to the oilseed this spring while pulling back slightly on corn, analysts said. They also expect the USDA, in its first official U.S. spring plantings forecast for 2014, to raise its estimates of corn, soy and wheat acreage above the unofficial figures released in February at its annual outlook forum.
* Brazilian lawmakers have scrapped a proposal to change taxes on soy sales from a bill on taxation of Brazilian companies abroad, shooting down market rumors of an export tax on the oilseed.
MARKETS NEWS
* Asian stocks were up slightly in a cautious start to the week, with investors holding out hopes that China would take steps to stimulate the economy.
* The yen stayed on the defensive, reaching a fresh six-year low on the New Zealand dollar as demand for the safe-haven currency waned amid hopes of more stimulus from China.
