Corn, soy lower on easing weather threat; wheat holds firm

PARIS/SYDNEY: US corn and soybean futures fell further on Wednesday as concerns eased over adverse weather in the Midwest crop belt.

The markets were also curbed by renewed diplomatic tensions between Washington and Beijing, which tempered optimism over recent Chinese demand, as well as investor worries about rising coronavirus cases in parts of the world.

Wheat edged higher, supported by uncertainty over harvests across Europe following the latest production forecasts.

The most active soybean futures on the Chicago Board Of Trade were down 0.3% at $8.99-1/2 a bushel at 1147 GMT, after earlier reaching a one-week low.

CBOT corn was down 0.6% at $3.50-1/4 a bushel, after also touching a one-week low.

"The only thing holding prices up at the moment is the threat of adverse weather and that isn't happening," said Phin Ziebell, agribusiness economist, National Australia Bank.

Weather forecasts were still showing warm, mostly dry weather in the US Midwest in the week ahead but with less intense heat than in some previous projections.

The US Department of Agriculture's (USDA) crop ratings for corn and soybeans also remained relatively high, with 71% of both crops rated good/excellent.

Traders were starting to turn their attention to the USDA's monthly supply and demand forecasts due on Friday.

CBOT wheat was up 0.6% at $4.98-1/4 a bushel, although it continued face resistance around the $5 threshold.

Euronext September wheat reached a one-month high of 186.50 euros ($210.52) a tonne.

On Tuesday, France's farm ministry forecast a near 21% drop in the French soft wheat harvest this year, while consultancies ProAgro and IKAR reduced their wheat harvest forecasts for Ukraine and Russia, respectively.

"The surplus that is forecast on the wheat market for 2020/21 should be taken with a pinch of salt," Commerzbank said.