Corn again around 7-1/2 year highs after huge Chinese buying in U.S.

HAMBURG- U.S. corn futures rose over 1% to again hit 7-1/2 year highs on Monday, once more supported by massive U.S. corn sales to China last week.

Soybeans rose on concern about rain in Brazil which also added extra support to corn. Wheat firmed with traders assessing reports that wheat export taxes are planned in Russia.

Chicago Board of Trade most active corn rose 1.1% to $5.53-1/2 a bushel at 1101 GMT, after touching $5.55-3/4, its highest since June 2013.

Corn had also hit 7-1/2 year highs on Friday following huge U.S. corn sales to China.

Soybeans rose 0.2% to $13.73-1/4 a bushel. Wheat rose 0.1% to $6.64 a bushel.

“The corn price is rising because Chinese demand for corn remains robust and unfavourable weather in South America may jeopardise the hoped-for yields,” Germany’s Commerzbank said.

The U.S. Department of Agriculture (USDA) on Friday reported sales of 2.108 million tonnes of U.S. corn to China. It was the second-biggest daily U.S. sale on record, eclipsed only by a deal for 3.72 million tonnes to the USSR in 1991. 

Friday’s deal followed other U.S. sales last week to China totalling 3.74 million tonnes, creating one of the largest U.S. corn export sales weeks on record. 

“The after-effects are still being felt today" Commerzbank added, regarding Friday’s report of the enormous U.S. export sales to China.

Analysts said soybeans have drawn support from concerns about potential harvest delays or even crop damage from unwelcome rain in Brazil as soybean crops are gathered. 

Wheat rose amid tightening global supplies and new signs of government moves to hold back Russian exports.

Russia, one of the world's largest wheat exporters, is considering a formula-based tax on the wheat it ships abroad from June 1, a month earlier than previously stated, Reuters reported on Saturday. 

(Reporting by Michael Hogan in Hamburg; additional reporting by Colin Packham in Canberra; editing by Jason Neely) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))