Corn firms from six-week low as market awaits US crop data

PARIS/SINGAPORE: Chicago corn futures rose on Monday, consolidating above a six-week low touched last week as investors awaited US government acreage and stocks data to see if they would confirm an outlook of hefty supplies.

Wheat also steadied after sliding last week on supply pressure from northern hemisphere harvests, with investors adjusting positions before the US Department of Agriculture's (USDA) crop estimates on Tuesday.

Soybeans ticked down, curbed by weaker vegetable oil markets and as traders watched for signs of further demand from China.

Analysts expect the USDA data to show plentiful supplies of grain and a modest shift in US plantings from corn to soybeans.

"Even a slightly lower corn acreage than that predicted by the USDA so far is still likely to allow a record crop," Commerzbank said.

"The forecast of plentiful rainfall in the Midwest in the next few days likewise raises few doubts about this."

Forecasts of regular showers across the US Midwest corn and soy belt in the week ahead have eased concern about the impact of rising temperatures on crops.

The most active corn contract on the Chicago Board of Trade (CBOT) was up 1.2% at $3.20-3/4 a bushel by 1126 GMT, having dropped last week to its lowest since May 12 at $3.15.

CBOT wheat added 0.7% to $4.79-1/4 a bushel and soybeans lost 0.1% to $8.64-1/2 a bushel.

Grain markets also took their cue from financial markets, with equities and oil prices edging higher as investors assessed the chances of an economic recovery against rising coronavirus cases around the world.

Wheat traders will be watching for results of a tender set for Tuesday by Algeria, the largest buyer of European Union wheat, as a sign of fresh demand after the recent pullback in prices.