CHICAGO: Chicago corn edged higher on Wednesday after hitting a one-year low earlier in the session as harvesting of the second-largest US crop on record boosts global supplies.
Wheat prices lost ground, falling for two out of three sessions, with abundant global supply giving stiff competition to US exporters, while soybeans rose after falling in the previous session.
The Chicago Board of Trade (CBOT) most-active corn contract was 0.15 percent higher at $3.38 a bushel by 1157 GMT, after dropping to its weakest since Nov. 14, 2016, at $3.37 a bushel. Corn closed down 1.4 percent in the previous session.
Wheat lost 0.2 percent to $4.27 a bushel, after closing up 0.9 percent in the previous session, while soybeans rose 0.5 percent to $9.72-1/2 a bushel, having finished down 0.7 percent on Tuesday.
"US corn yields have been better than expected and Brazilian weather is improving," said one India-based agricultural commodities analyst. "The bearish trend in corn prices is expected to continue in 2018 as well."
The US Department of Agriculture late on Monday said the corn harvest was 83 percent complete and the soybean harvest was 93 percent finished.
There was additional downward pressure on corn and soybean prices from rains across Brazilian growing areas.
Rains in Mato Grosso have convinced the market that the rest of the Brazilian planting process will be wrapped up in the next few weeks, analysts said. This will also allow farmers to plant the second corn crop in a timely manner.
Other analysts were more optimistic with the managing director of US based consultancy telling the Global Grains conference in Geneva she believed corn, wheat and soybeans are broadly trading near lows of last few years.
"I don't have any interest in being short (in corn) at $3.50, not with funds likely to be record short," Emily French told the conference.
Dry conditions were expected next week in Argentina's main agricultural area, which could delay soybean planting.
"That's going to be the critical price factor for the next three to six months," French said.
The National Oilseed Processors Association's October crush report is expected to show that US processors crushed their fourth-largest monthly volume of soybeans last month and the second-biggest October volume on record, analysts said.
Analysts are expecting an October crush of 164.475 million bushels, according to the average of seven estimates given in a Reuters survey.
Commodity funds were net sellers of CBOT soybean, corn, soyoil and soymeal futures contracts on Tuesday, traders said. They were net buyers of wheat.
Trader estimates of net fund selling in corn ranged from 10,000 to 16,000 contracts, and in soybeans from 5,000 to 7,000 contracts. Estimates of net buying in wheat ranged from 1,000 to 6,000 contracts.
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