SINGAPORE: Chicago corn and soybean futures ticked higher on Monday, after losses in the previous session, although gains were limited due to expectations of further rains in the U.S. Midwest.
Wheat prices slid for a third consecutive session to a one-week low due to ample supplies from newly harvested Russian crop.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.95 a bushel as of 0259 GMT, while soybeans was 0.3% higher at $13.21-1/2 a bushel. Wheat fell 0.6% to $6.45-3/4 a bushel.
Mexico says corn production will rise in 2023 amid US trade tensions
Grain traders are monitoring shifts in weather as more U.S. corn enters its critical pollination stage. Two-thirds of corn and 60% of soybeans were affected by drought as of July 4, according to the U.S. Department of Agriculture (USDA).
Normal to above-normal precipitation is forecast for the central and southern Midwest over the next six to 15 days and the northwest corner of the region is expected to remain largely dry, according to Commodity Weather Group.
Weekly USDA corn export data showed sales came in line with trade expectations last week, while wheat sales and new-crop soybean sales topped estimates.
Additionally, the USDA on Friday confirmed that Mexico purchased 180,000 metric tons of old- and new-crop U.S. corn.
Traders are awaiting a monthly USDA supply-and-demand report on Wednesday, with cuts to U.S. corn and soybean yield estimates possible.
Russia, the world’s biggest wheat exporter, is on track for a bumper harvest.
Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week ended July 3, regulatory data released on Friday showed.
Non-commercial traders, which includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans, the Commodity Futures Trading Commission’s weekly commitments of traders report showed.
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