Corn steadies after 2-week low as US export data eyed

PARIS/SINGAPORE: Chicago corn futures steadied near the end of overnight trading on Thursday after a two-week low as traders awaited US weekly export data that follows surprising government supply-and-demand forecasts this week.

Soybeans turned higher after a near two-week low earlier on Thursday while wheat bounced off a one-week low on Wednesday.

Chart support levels helped grain prices to steady after a steep fall since Tuesday's monthly crop forecasts from the US Department of Agriculture (USDA) disappointed traders with a smaller-than-expected reduction to US corn stocks following massive recent export sales to China.

Focus was now turning to the USDA's weekly export sales report for demand indications.

The USDA's announcement on Wednesday that unknown buyers cancelled an export deal for 132,000 tonnes of US corn has added to uncertainty about the scale of Chinese demand.

"Chinese demand remains unknown," consultancy Agritel said. "In this context, weekly exports will be closely monitored this afternoon."

The most-active corn contract on the Chicago Board Of Trade was down 0.2% at $5.33-1/2 a bushel by 1313 GMT, after hitting its lowest level since Jan. 26 at $5.24-3/4 a bushel earlier in the session.

Soybeans edged up 0.4% to $13.58-3/4 a bushel and wheat as up 0.8% at $6.40-1/4 a bushel.

Traders said the USDA's monthly corn forecasts had encouraged liquidation across grains after multi-year highs in the past month.

Despite the USDA's forecast of US soybean stocks slightly below market consensus, soybean prices came under pressure from the Brazilian soybean harvest and improved growing conditions in Argentina after recent rain.

A decision by Argentina's government not to go ahead with proposals to raise taxes on farm exports or limit how much grain can be shipped abroad was also easing concerns about South American supplies of soybeans and corn.