SINGAPORE: Chicago soybeans rose on Wednesday after hitting a three-week low, while corn gained following two straight days of losses in positioning ahead of key US reports which will shed light on damage caused by a historic Midwest drought.
Funds have been liquidating bullish bets in the markets heading into US Department of Agriculture supply-demand and crop production reports due at 1230 GMT later on Wednesday.
Some traders expect the USDA to announce further cuts in soybean and corn estimates, while others suspect the markets have already factored in the worst drought in 56 years.
"We are expecting a downgrade in soybean production which is mainly based on the area assessment," said Luke Mathews, a commodities strategist at the Commonwealth Bank of Australia.
"It will be the same scenario for corn, abandonment (of acres) is likely to be revised higher for corn, resulting in overall downgrade in production."
Chicago Board of Trade new-crop November soy rose 0.7 percent to $17.13-3/4 a bushel by 0233 GMT after touching a low of $16.96-3/4 a bushel, lowest since Aug. 21.
December wheat added 0.4 percent to $8.87-1/2 a bushel and December corn rose 0.4 percent to $7.81 a bushel.
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