September 16, 2019 / 1:29 AM / a month ago

GRAINS-Corn hits 17-day high on prospects of more ethanol demand

SYDNEY, Sept 16 (Reuters) - U.S. corn futures rose more than 0.5% on Monday to hit their highest in more than two weeks as firmer oil prices stoked expectations of a surge in ethanol demand.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 0.7% at $3.71-1/4 a bushel, as of 0053 GMT, near the session high of $3.73 a bushel - the highest since Aug. 30. Corn closed 0.4% firmer in the previous session.

* The most active soybean futures were up 0.3% at $9.01-3/4 a bushel, near a session high of $9.04-3/4 a bushel - the highest since July 30. Soybeans ended up 0.4% on Friday.

* The most active wheat futures were up 0.2% at $4.84-1/2 a bushel, having closed little changed on Friday.

* Corn draws support from higher oil prices, which could encourage greater ethanol use.

* China will exempt some agricultural products from additional tariffs on U.S. goods, including pork and soybeans, China’s official Xinhua News Agency said on Friday, in the latest sign of easing Sino-U.S. tensions ahead of a new round of talks aimed at curbing a bruising trade war.

* The U.S. Department of Agriculture on Friday confirmed a portion of those sales, reporting that Chinese importers booked 204,000 tonnes for 2019/20 marketing year shipment.

MARKET NEWS

* The dollar fell, while safe-havens and currencies of oil producing countries rallied on Monday, following an attack on Saudi Arabian refining facilities that disrupted global oil supply and heightened Middle East tensions.

* Oil prices surged more than 15% to their highest level in nearly four months at the open on Sunday after an attack on Saudi Arabia’s oil facilities on Saturday that knocked out more than 5% of global oil supply.

Reporting by Colin Packham; Editing by Aditya Soni

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