Corn and soybeans inch higher as traders eye US crop conditions

CANBERRA: Chicago corn and soybean futures edged up on Wednesday and were hovering above multi-year lows as concerns over the condition of US crops were offset by ample supply.

CBOT corn, soy futures rise on short-covering

Wheat futures also rose slightly but were under pressure from a rapidly advancing US harvest.

Fundamentals

• The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.21-1/2 a bushel by 0052 GMT after falling to $3.99-1/2 on Friday, its lowest since 2020.

• CBOT soybeans rose 0.1% to $11.14-1/4 a bushel having slumped to $10.97, also its lowest since 2020, on Monday.

• Wheat was up 0.3% at $5.82-1/2 a bushel after falling to a two-month low of $5.57 in June.

• US government data on Monday showed the condition of the US corn crop had deteriorated and soybean ratings had held steady after floods swamped portions of the northwestern Midwest.

• Some meteorological models predict the western Corn Belt could face dry weather and high heat in late July or early August, which could impact soybean pod setting.

• Half of US Crop Watch producers have ongoing crop concerns, particularly with corn.

• The US Department of Agriculture (USDA) also reported on Friday that US farmers planted more corn than it forecast in March, hitting corn prices.

• US farmers are holding onto corn and soybeans waiting for better prices, which could hamper any price recovery.

• Brazilian second-corn farmers are expected to reap 100.5 million metric tons in the 2023/24 cycle, 10% less than last season but more than initially thought, consultants Agroconsult said.

• China’s COFCO International projects a potential increase of Brazilian soybean and corn harvests in the 2024/25 cycle, it said.

• China is likely to import record volumes of soybeans in July, drawn by lower prices and the prospect of Donald Trump returning as president.

• In wheat, harvesting of the US winter crop continued to progress ahead of the average pace and condition ratings improved for spring wheat in the northern Plains, the USDA said.

• Russian wheat export prices declined for a fourth week in a row last week but uncertainty remains about the final size of the harvest in the world’s largest wheat exporter.

• Commodity funds were net buyers of CBOT corn, soybeans, soymeal and soyoil futures and net sellers of wheat on Tuesday, traders said.