Corn firms for first time in six sessions, USDA report eyed

CANBERRA: US corn futures edged higher on Monday for the first time in six sessions as traders readied for a widely watched supply-demand report from the US Department of Agriculture (USDA).

Soybeans inched higher for a second straight session, while wheat ticked lower for a seventh session in a row.

The most-active corn futures on the Chicago Board Of Trade were up 0.2% at $5.18 a bushel, as of 0435 GMT, having closed 1.3% lower in the previous session, when prices hit a Jan. 25 low of $5.07 a bushel.

"People are squaring away ahead of the USDA report," said Phin Ziebell, agribusiness economist, National Australia Bank. "People are looking for direction and the USDA will provide that."

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The USDA report is expected to show an increased corn production despite recent unfavourable weather.

Nascent corn crops have been enduring sustained hot and dry weather but weather models now see rains across the Midwest.

Traders were also keeping a close eye on protests in Argentina for signs of potential supply disruptions.

The most-active soybean futures were up 0.2% at $13.31-1/4 a bushel, having closed 0.7% higher on Friday.

Soybeans drew support from demand for US exports, including recent sales to Mexico.

The most-active wheat futures were down 0.1% at $6.14-1/2 a bushel, having closed 0.5% lower on Friday.

Wheat production in the European Union and Britain is set to rebound this year as the crop area and yields recover from weather woes in the previous growing season, a Reuters poll showed.