HAMBURG/SINGAPORE: Chicago corn, wheat and soybeans recovered on Wednesday after sharp falls a day earlier as attention returned to the scorching weather threatening US crop belts and concerns an Argentine truck drivers strike could disrupt grain exports.
The most active December corn contract on the Chicago Board of Trade rose 0.5 percent to $3.50-1/2 a bushel, having slumped 4 percent on Tuesday after good US crop condition reports.
The most active September wheat future climbed 0.7 percent to $4.21-1/4 a bushel, approaching previous lows seen earlier in July, after sliding to its lowest since 2007 on Tuesday.
The most active November soybean contract rose 0.1 percent to $10.29-1/4 a bushel at 0950 GMT.
Soybeans fell more than 3 percent on Tuesday and dropped to $10.21-3/4 a bushel earlier on Wednesday, the lowest since July 8, after positive reports about the state of US crops.
"Soybeans, corn and wheat are being supported by the forecasts of very hot weather in the US crop belt which is underpinning prices along with technical bargain buying after the sharp falls seen on Tuesday," said Frank Rijkers, agrifood economist at ABN AMRO Bank.
"US crop ratings were good this week but a lot can still change with adverse weather, and I expect the market to continue its focus on US weather forecasts for the coming weeks," Rijkers said. "The world market needs a substantial US soybean harvest after soybean crop damage in South America this season."
Markets have been swinging up and down in recent days as good or bad weather forecasts for US crops were received. The latest US Department of Agriculture (USDA) crop progress report on Monday showed US grains and soybeans were in excellent shape, which had weakened prices on Tuesday.
But blazing heat is expected in the US corn belt this week, with temperatures potentially surpassing 100 degrees Fahrenheit (38 Celsius) in the southwest quarter of the region, the Commodity Weather Group said.
"The strike by truck drivers in Argentina is also of concern in case it disrupts transport of Argentina's corn, soybean and soymeal exports to ports," Rijkers said.
Argentine grain truckers started an open-ended strike on Monday over transport prices. Corn exports from Argentina, the world's No. 3 supplier, could be slowed in the days ahead if farmers and striking truck drivers fail to reach a deal, an exporters' organisation said.
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