PARIS/BEIJING, April 30 (Reuters) – Chicago grain futures reversed course on Thursday, tracking a retreat in crude oil prices that earlier hit a four-year high.
The most-active soybean contract on the Chicago Board of Trade was down 0.6% at $11.90 a bushel as of 1130 GMT after hitting its highest point in more than six weeks.
Global oil prices fell after hitting a four-year high of more than $126 a barrel on Thursday. [O/R]
The strength of oil prices, which have risen because of unprecedented supply disruption linked to the Iran war, has buoyed the soy complex and corn futures, as soybeans and corn are feedstocks for biofuel production.
CORN AND WHEAT ALSO PARE GAINS
Corn also pared gains and was down 0.7% to $4.74-1/4 a bushel, still hovering near a two-year high.
Early planting of U.S. soybeans and corn has progressed well, though expected storms in the Midwest could delay seeding in some areas.
Wheat shed 1.5% at $6.53 a bushel, still near its highest level in nearly two years as dryness in the U.S. winter wheat belt raised concerns about supplies.
Analysts also cited the decision of Indonesia, one of the world’s biggest wheat importers, to tighten import regulations for some products with effect from May 8. Products such as feed wheat, which previously could be imported without restriction, will require government approval for each shipment.
“The regulation could act as a brake on prices: the bureaucratic hurdles will reduce Indonesian demand on the world market, which could lead to an oversupply among major exporting nations and ease upward pressure on prices somewhat,” Commerzbank said in a note.
Commodity funds were net sellers of corn, wheat and soymeal, traders said on Wednesday.
Prices at 1130 GMT
Last Change Pct Move
CBOT wheat 643.00 -10.00 -1.53
CBOT corn 474.25 -3.50 -0.73
CBOT soy 1190.00 -7.00 -0.58
Paris wheat 214.00 -3.25 -1.50
Paris maize 223.25 -1.50 -0.67
Paris rapeseed 596.50 0.00 0.00
Euro/dlr 1.17 0.00 0.34
Most active contracts – Wheat, corn and soy US
cents/bushel, Paris futures in euros per metric ton
(Reporting by Ella Cao and Lewis Jackson in Beijing and Sybille de La Hamaide in Paris; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Barbara Lewis)
