CANBERRA: Chicago corn and soybean futures on Tuesday hovered near multi-month highs reached after the US government last week said that US farmers’ 2024 harvests were smaller than expected. Wheat futures rose slightly.
The most active corn contract on the Chicago Board of Trade (CBOT) was down 0.4% at $4.74-1/2 a bushel, as of 0407 GMT, after reaching $4.77 on Monday, its highest since December 2023.
CBOT soybeans were unchanged at $10.53 a bushel after rising to $10.55, the highest since October 2024, earlier in the session.
The US Department of Agriculture (USDA) on Friday jolted the market by slashing its estimates for 2024 US corn and soybean production and end-of-season stocks, implying a tighter supply outlook than expected.
The data led a slew of commodity funds to add to their bullish position in corn and cover short positions in soybeans, traders said. Funds are now most bullish on corn since 2022 but are bearish on soybeans due to plentiful supply.
Overseas demand for US corn has been strong, with the USDA saying that 1,441,006 metric tons were inspected for export in the latest week, well above trade expectations. Upcoming South American harvests loom over corn and soy markets.
Soybeans set for first weekly gain in a month on booming US exports
Soybean prices will likely be weighed down by forecasts that Brazil will produce over 170 million tons, analysts said. However, Brazil’s soybean harvest got off to a slow start and Argentina’s corn and soybean crops face a heat wave over the next few days, which might affect yields.
“Forecasters say there’s rain on the horizon in Argentina but whether that comes or not, crops will be downgraded,” said Andrew Whitelaw, an analyst at Episode 3 in Canberra. Wheat and corn are used to feed animals and higher corn prices are supporting wheat, he said.
CBOT wheat rose 0.1% to $5.45-1/4 a bushel, but remained close to a four-year low of $5.14 touched last year.
Export prices in top shipper Russia have remained almost unchanged since the beginning of the year amid weak demand, and analysts expect shipments to fall.
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