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GRAINS-Corn slips from multi-year high as strong dollar, equity sell-off weigh

(Updates prices, adds quotes)

HANOI, Jan 28 (Reuters) - Corn prices slipped from multi-year highs on Thursday as traders booked profits, while a sharp fall in global equities and a rise in dollar also weighed on sentiment.

The Chicago Board of Trade (CBOT) most-active corn contract dipped 0.5% to $5.31-3/4 a bushel at 0444 GMT, having hit its highest since June 2013 in the previous session, and wheat dropped 1.4% to $6.49-1/4 a bushel.

Asian shares slid while the safe-haven dollar rallied as a sudden sell-off on Wall Street and delays with coronavirus vaccines served as an excuse to book profits on recent hefty gains.

A firmer dollar makes the more expensive greenback-priced grains less appealing to holders of other currencies.

“A risk-off tone across markets is likely to weigh on commodity prices in the short term,” ANZ said in a note.

Soybean prices, however, edged up 0.1% to $13.76-1/2 a bushel amid tight supplies.

U.S. soy processors, fresh off their busiest year on record, have booked soybean purchases well beyond their normal few weeks of supply due to soaring export demand, rising prices and fears of soy shortages later this season.

Expected record Chinese imports of corn and soybeans in the coming seasons will continue to absorb U.S. supplies, Chicago-based consultancy AgResource Co said.

“We don’t know depth of PRC corn (People’s Republic of China) demand but we do know that they have drawn down their internal corn reserves, that they are auctioning off large amounts of wheat,” said Richard J. Feltes, head of market insights at broker R.J. O’Brien.

“(A) High internal PRC corn price provides strong incentive for their state owned grain companies to keep buying US corn,” he said in a research note.

Argentina is looking for ways to ensure ample domestic wheat supplies without having to halt exports, a top official said on Wednesday, as farmers fretted about possible state intervention in the markets. (Reporting by Mai Nguyen; Editing by Rashmi Aich)

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