CHICAGO: Chicago corn futures rose on Tuesday after the US Department of Agriculture (USDA) reported signs of crop damage due to recent hot weather across the western corn belt.
Wheat trimmed as winter wheat harvests continue, while soyabeans remained mostly unchanged as stronger soyaoil markets offset a beleaguered soyameal trade.
Chicago Board of Trade most-active corn rose 1-3/4 cents to $3.31 a bushel as of 10:40 a.m. CDT (1540 GMT), after hitting $3.34-1/2, it's highest since June 8.
Wheat was down 5-1/2 cents to $4.99-1/4 a bushel, while soyabeans fell 2 cents to $8.67 a bushel.
The USDA rated 71% of the US corn crop in good-to-excellent condition in its weekly report after the market closed Monday, dropping from last week and average analyst expectations of 75%.
"The initial catalyst was the downgrade in conditions, even though we think the current weather pattern of hot and dry out west is going to break by week's end," said Tom Fritz, commodity broker at EFG Group, noting that the funds heavily shorting corn continues to support the market.
The USDA said 72% of US soyabeans were in good/excellent condition, the same as last week and analyst expectations. It said 15% of US winter wheat was harvested, against 7% last week and 17% expected by analysts.
"The soyabean market spins its wheels. Strength in bean oil keeps it alive, whereas the meal market is unable to do anything on the upside," said Fritz.
Wheat futures continue to drag on global stocks as winter wheat harvest marches on in the US Great Plains and abroad, while funds continue to add to short positions.
"My guess is, the short is stepping in and resetting in wheat," said Joe Davis, director of commodity sales at Futures International. "It was up a couple cents overnight, but especially with the open, it just broke."-Reuters
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