PARIS/SINGAPORE: Chicago new-crop corn hovered around a three-year low on Monday in the run-up to a closely watched US government report that is expected to raise projected US production to a new record.
Soybeans rose as some operators anticipated a slight cut to the US Department of Agriculture's crop forecast for the oilseed. US wheat held at its lowest level in more than a year, pressured by corn.
"Oilseeds are slightly stronger but the main game is going to be tonight's USDA report," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
"We will have a much clearer view on world supplies tomorrow. The market is going to tread water until we have the report," Mathews added.
Grains analysts expect the US government to raise its record-large forecast for the 2013 corn harvest and keep the soybean crop at a record level, reflecting mild growing weather.
In a Reuters poll, the average estimate of analysts pegged 2013 US soy production at a record-high 3.338 billion bushels and corn at a record 13.980 billion bushels.
Bumper crops will help build reserves and keep grain prices well below the drought-induced peaks from last year, thus encouraging livestock producers, ethanol makers and overseas customers to book more purchases.
Chicago Board of Trade December corn was unchanged on the day at $4.53-1/4 a bushel by 1158 GMT. It earlier slipped to $4.52, equalling Friday's low - a level not seen on the contract since early October 2010.
Crop forecaster Lanworth slightly raised on Friday its outlook for US corn and soybean harvests following a crop tour of key production states.
Warm temperatures around the US Midwest at the end of summer should provide time for late-planted corn and soybeans to mature, an agricultural meteorologist said. But there is some background concern about dry conditions for soy crops, which are less advanced than corn.
New-crop November soybeans gained 0.9 percent to $11.93 a bushel.
Soybean futures have found some support from strong global demand. China, the world's biggest importer, last week reported record imports for July, and US weekly new-crop export sales on Thursday were above expectations.
Elsewhere in the oilseed complex, palm oil futures in Asia rose as traders took a less bearish view on supply.
CBOT September wheat inched down 0.3 percent to $6.31-3/4. It earlier matched Friday's low of $6.30-1/2, the weakest front-month price since June 2012.
In Europe, November milling wheat in Paris was down 0.3 percent at 182.50 euros a tonne, after slipping to a new contract low of 182.25 euros, the lowest front-month level since December 2011.
With the USDA not expected to make major changes to its US wheat harvest estimate, reaction to the report may come from adjustments in its world wheat outlook.
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