Corn hits one-week high on US crop worries, soybeans firm

SINGAPORE: Chicago corn rose to a one-week high on Wednesday, while soybeans gained more ground as concerns about declining US crop conditions supported prices.

Wheat eased after closing higher on Tuesday, though persistent attacks on grain vessels in the Black Sea limited the downside.

The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.1% to $5.08-1/4 a bushel by 0214 GMT, after hitting its highest since September 30 earlier in the session.

Wheat fell 0.1% to $7.03-1/2 a bushel and soybeans added 0.3% to $13.07-1/4 a bushel.

Grain traders are monitoring Midwest weather forecasts as farmers ramp up harvesting following rain delays last week. Much of the region is expected to remain dry over the next week.

The US Department of Agriculture on Monday said US farmers had harvested 23% of their corn and 25% of their soybeans as of Sunday, less than expected by analysts and below the average pace over the past five years.

The agency also cut its estimate of corn crops rated in good-to-excellent condition more than expected.

For soybeans, recent rains have sparked concerns about crop quality and oil content.

The USDA will update its US corn and soybean harvest outlooks in a monthly supply-and-demand report on Friday.

Two merchant ships, including one carrying grain, were hit on Tuesday in a drone strike in the Black Sea off Bulgaria.

Another vessel was struck on Monday outside Romania’s territorial waters, in an attack blamed by Ukraine on Russian drones.

A powerful El Nino is setting up a split South American weather market, brightening crop prospects in Argentina while raising early concern over dryness in northern Brazil that could threaten the country’s key safrinha corn crop, meteorologist Kyle Tapley said on Tuesday.