Corn eases after rally as US harvest weighs; wheat firms

SINGAPORE: Chicago corn futures slid on Thursday, giving up some of the previous session's gains, as expectations of ample supplies from freshly harvested US crop added pressure on prices.

Soybeans were largely unmoved, while wheat rose for a second session.

"But overall the supply picture is looking good with US harvest progressing well," said a Singapore-based trader.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was down 0.5% at $5.23 a bushel, as of 0250 GMT, having closed 1.6% higher in the previous session.

Soybeans were steady at $12.83 a bushel and wheat added 0.4% at $7.08-1/4 a bushel.

Corn futures rallied on Wednesday on the back of rising crude oil and strong financial markets, more than offsetting seasonal pressure from an accelerating US harvest.

Oil prices rose on Thursday, extending strong gains overnight with fuel demand growing and crude stocks declining as production remains hampered in the US Gulf of Mexico after two hurricanes.

Agricultural products often take a direction from energy markets on growing use of alternative fuels made from corn, soyoil and palm oil.

On the supply front, US farmers are expected to make a brisk progress on harvesting corn crops amid forecasts for mostly dry weather across the Midwest and Delta region over the next 10 days.

Commodity funds were net buyers of CBOT corn, wheat, soybean and soyoil futures contracts on Wednesday and net even in soymeal, traders said.