Corn up for second day on expectations of lower US yields

SINGAPORE: Chicago corn futures rose for a second session on Monday on expectations of a marginally lower yield-forecast from the US Department of Agriculture, although ample world supplies kept a lid on prices.

The Chicago Board of Trade most-active corn contract had risen 0.2 percent to $3.57-1/2 a bushel by 0315 GMT, having gained 0.4 percent in the previous session.

Wheat climbed 0.4 percent to $4.39-1/2 a bushel, after closing up 0.1 percent on Friday, while soybeans were up 0.4 percent at $9.66 a bushel, having ended Friday down 0.7 percent.

"The (corn) market is expecting the USDA to lower yields, which is providing some support," said one India-based agricultural commodities analyst.

"But even with slightly lower yields, supply pressure is not going to ease. We have huge stocks."

Corn prices have been facing pressure in recent weeks from expectations of a bumper US harvest, with the US government set to update its crop production forecast in a monthly report on Tuesday.

China's corn output in 2017 will be higher than previously expected thanks to favourable weather as the grain matures, the China National Grain and Oils Information Center said on Friday.

According to its latest forecast, China will produce 212.5 million tonnes of corn, 3.2-percent lower than last year but 1 million higher than an August estimate of 211.5 million tonnes.

For soybeans, Chinese demand is likely to be the key driver after the US harvest finishes.

The USDA said on Friday morning that private exporters reported the sale of 264,000 tonnes of soybeans to China for delivery during the 2017/18 marketing year, the biggest flash sale in 2-1/2 weeks.

Weekly export sales of soybeans totalled 1.16 million tonnes, the USDA said, just above market forecasts that ranged from 500,000 to 1.10 million tonnes.

China, the world's largest soybean buyer, imported 8.45 million tonnes of soybeans in August, a record for the month, customs figures showed on Friday.

Canada's spring wheat harvest could be larger than expected, adding to ample global supplies of the grain, crop analysts said, but quality has been variable, keeping stocks of wheat for making bread in tight supply.