for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

GRAINS-Corn at 2-week high on China demand, Brazil harvest rain supports soy

    * Big Chinese purchases of U.S. corn, ethanol fuel rally
    * Soybeans also up for 3rd day as rain raises Brazil harvest risks
    * Wheat also stayed firm as Russian export tax assessed

 (Updates with European trading, changes byline/dateline)
    By Gus Trompiz and Mai Nguyen
    PARIS/HANOI, Jan 27 (Reuters) - Chicago corn futures extended gains on
Wednesday to touch a two-week high as big Chinese purchase of U.S. supplies put
attention back on tightening global stockpiles.
    Soybeans also stayed firm, reaching a one-week high, as rains were set to
slow early harvesting in Brazil.
    Wheat ticked higher, tracking corn and soy.
    After a sell-off last Friday, grain markets have rebounded this week. Gains
on Wednesday, however, were more moderate than in the previous session as prices
faced chart resistance ahead of multi-year highs struck earlier this month,
traders said.
    The U.S. Department of Agriculture announced on Tuesday the biggest U.S.
corn sale to China since July at 1.36 million tonnes.
    Separately, agribusiness group Archer Daniels Midland Co said China
had bought about 200 million gallons of U.S. ethanol for the first half of 2021,
matching its previous record for annual imports of the corn-based biofuel.

    Huge Chinese demand for grains has eroded available supply in the United
States and other grain exporters such as Ukraine, making the market nervous
about any potential harvest setbacks in South America.
    "The near-term underlying bullish sentiment is still very much in place. We
still have two to three months at least before we have confirmation that the new
crop of global grain or oilseed will be adequate," said Ole Houe, director of
advisory services at agriculture brokerage IKON Commodities.
    "Until then, the market is likely to continue upwards, with China demand as
the key driver."
    The Chicago Board of Trade (CBOT) most-active corn contract was up
0.8% at $5.36-1/4 a bushel, after earlier touching a two-week top at $5.39-1/2.
    CBOT soybeans were up 0.8% at $13.81-3/4.
    Rains has disrupted early harvest work in some Brazilian soybean-growing
areas, also potentially delaying planting of the country's second corn crop.

    CBOT wheat was up 0.1% at $6.65-3/4 a bushel. Concerns over available
supplies continued to underpin prices, after Russia approved a higher export tax
on wheat from March 1.
    
 Prices at 1003 GMT                                                 
                              Last  Change   Pct      End    Ytd Pct
                                            Move     2020       Move
  CBOT wheat                665.75    0.50  0.08   640.50       3.94
  CBOT corn                 536.25    4.00  0.75   484.00      10.80
  CBOT soy                 1381.75   11.50  0.84  1311.00       5.40
  Paris wheat Mar           230.25    0.50  0.22   213.25       7.97
  Paris maize Mar           215.25    0.25  0.12   198.50       8.44
  Paris rape Feb            439.75    1.25  0.29   418.25       5.14
  WTI crude oil              52.90    0.29  0.55    48.52       9.03
  Euro/dlr                    1.21    0.00  -0.3   1.2100       0.17
                                               3           
 Most active contracts - Wheat, corn and soy US cents/bushel, Paris
 futures in euros per tonne
 
    

 (Reporting by Gus Trompiz; editing by David Evans)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up