SINGAPORE: Chicago corn and soybean futures climbed on Tuesday, with both markets clawing back from previous session’s nearly two-week low, supported by a slower-than-expected pace of the US harvest.
Wheat prices gained more than 1% and were set to snap a two-session losing streak.
“Agricultural markets have faced pressure in the last few sessions due to concerns over global recession,” said a Singapore-based trader. “But we have a slight strength today as the US harvest is slow.”
The Chicago Board of Trade (CBOT) most-active corn contract was up 0.2% at $6.67-3/4 a bushel, as of 0356 GMT, and soybeans added 0.3% to $14.15-1/2 a bushel.
Wheat gained 1% at $8.66-1/2 a bushel.
The US Department of Agriculture said corn harvest was 12% complete, as of Sunday, behind the average analyst estimate of 13% and the five-year average of 14%.
The soybean harvest was 8% complete, lagging the average analyst estimate of 11% and the five-year average of 13%, the agency reported after the market closed on Monday. Asian markets attempted to stabilise on
Tuesday after a wild few days of stumbling stocks, crumbling bonds, a plunging pound and soaring dollar.
Corn jumps to 2-month high as dryness curbs US yields
Wheat futures bounced back, although expectations of higher output in Russia limited gains.
The European Union’s crop monitoring service MARS on Monday raised its projections for Russia’s 2022 wheat crop to a new record high, but lowered its grain maize crop forecast to take account of hot and dry summer weather.
In a report, MARS estimated the Russian wheat harvest at 95 million tonnes, up from 88.8 million seen in its previous estimate in June, and now 25% above last year.
Ukraine on Monday urged the European Union to support its plans to make the emergency paths for grain exports through the bloc permanent, with investment in at least five border terminals and a pipeline through which sunflower oil would flow.
Soymeal prices in China, the world’s top consumer of the animal feed ingredient, are at record highs as rising demand from farmers came in after months of lacklustre soybean imports. Commodity funds were net sellers of CBOT wheat, corn, soybean, soymeal and soyoil futures contract on Monday, traders said.
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