Corn hovers close to 8-month low as US harvest approaches

SYDNEY: US corn eased on Wednesday as expectations that the market will soon be flooded with ample North American production pushed prices towards an eight-month low.

The most active corn futures on the Chicago Board Of Trade were down 0.1 percent to $3.48-1/2 a bushel by 0304 GMT, having closed down 0.9 percent in the previous session when prices hit $3.47 a bushel - the lowest since Dec. 27, 2016.

Analyst said corn was under pressure from the approaching US harvest that is expected to supply the market with plentiful supplies, despite dry weather earlier in the season.

"The corn market looks to be firmly on a seasonal decline track," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Fears of potential shortfalls in US output have ebbed in recent weeks after earlier dry weather. The US Department of Agriculture (USDA) said 62 percent of the US corn crop was in good to excellent condition, unchanged from last week.

Capping losses, analysts said, was recent strong export demand and potential delays in harvesting in the Mississippi River Delta region.

The USDA said on Tuesday exporters sold 226,000 tonnes of US corn to Mexico.

In other grains markets, wheat rose as prices rebounded from a near three-month low, while soybeans edged higher.

The most active wheat futures were up 0.6 percent to $4.32-1/4 a bushel, having closed up 0.4 percent on Tuesday after earlier hitting a low of $4.22-1/2 a bushel - the lowest since June 1.

The most active soybean futures were up 0.3 percent to $9.40 a bushel, having closed down 0.4 percent on Tuesday.

Analysts said soybeans were drawing support from concerns about potential delays in US shipments as a result of Hurricane Harvey, while recent US sales also aided market sentiment.

The USDA said 198,000 tonnes of US soybeans were sold to China.