CHICAGO: US corn futures edged higher in actively traded nearby contracts on Tuesday on strong export demand after the US Department of Agriculture confirmed the largest sales to China since January.
Soyabean futures were mixed, with nearby prices rising on concerns about South American harvest weather and spillover support from higher spot corn prices, while wheat futures eased.
After weeks of sluggish corn export sales, grain traders had anticipated accelerated buying by China ahead of high-level talks with the United States later this week.
The USDA on Tuesday confirmed US corn sales to China totalling 1.156 million tonnes, the most since January.
The sales came after the USDA on Monday reported one of the strongest weeks of corn export inspections on record.
“We’ve been hearing since last week that China might be buying ahead of the meeting in Alaska,” said Ted Seifried, chief ag market strategist at Zaner Group.
“The market was slightly disappointed that it wasn’t a bigger number, but also cautiously optimistic that we might see more tomorrow.”
Grain traders are also monitoring weather in South America, where periods of dryness and, at times, excessive rains have disrupted field work. The adverse weather lifted hopes for additional US export sales.
Chicago Board of Trade May corn was 2-1/4 cents higher at $5.51-3/4 a bushel at 11:43 a.m. CDT (1643 GMT), while May soyabeans gained 3/4 cent to $14.20-1/4 a bushel. Deferred contracts were mostly lower on expectations for a surge in US plantings this spring.
CBOT May wheat was 1/2 cent lower at $6.44-3/4 a bushel after touching a one-month low earlier in the day amid improved US winter crop conditions.
Also weighing on wheat were signs that Russia was prepared to stop interfering in the regulation of grain exports.
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