Corn gains for fifth day on strong demand, wheat eases

PARIS: Chicago corn futures gained for a fifth consecutive session on Wednesday as Chinese purchases of US supplies underpinned the market.

Wheat prices eased after rising for two straight sessions, while soybeans fell.

"News of a hefty US export sale to China was a plus," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.1% to $5.55 a bushel as of 1149 GMT, after gaining 0.9% on Tuesday.

Soybeans were down 0.6% at $14.14-3/4 a bushel and wheat fell 0.7% to $6.42-1/4 a bushel.

"Wheat prices were under pressure due to the improved crop rating and the possibility of the Russian government lifting its export tax rules," French consultancy Agritel said.

The US Department of Agriculture (USDA) on Tuesday confirmed US corn sales to China totalling 1.156 million tonnes, the highest since January.

The sales came after the USDA on Monday reported one of the strongest weeks of corn export inspections on record.

There could be more demand for corn imports as China faces a threat from armyworm, a pest that attacks corn among other crops.

Pressure to prevent and control armyworm in China this year is significantly higher than last year, the country's agriculture ministry said on Tuesday.

Russia is prepared to stop interfering in the regulation of grain exports when the market stabilises, the Interfax news agency cited Agriculture Minister Dmitry Patrushev as saying on Tuesday.