SINGAPORE: Chicago corn futures edged lower on Friday after making sharp gains in the previous session, but the market was poised for a second consecutive weekly rise on concerns over hot weather in parts of the US Midwest. Wheat and soybeans also lost ground.
The most-active corn contract on the Chicago Board of Trade (CBOT) has risen almost 2% so far this week. The market was trading down 0.2% at $7.87 a bushel, as of 0110 GMT.
Wheat gave up 0.5% to $10.73 a bushel and soybeans fell 0.2% to $17.06-1/4 a bushel. There is no immediate threat to the US corn crop, which was planted in wet weather, but prolonged dryness and record temperatures could curb yields.
Temperatures across the Midwestern United States this week have soared well above average, in some cases to the highest since 2012, when severe drought hit the Corn Belt, wrecking crop yields and boosting prices.
“US corn is generally in good condition at this early stage,” Karen Braun, a market analyst for Reuters, wrote in a column. “Although crops will be stressed in blazing heat, permanent damage is avoidable if weather improves next month.”
In July, US corn typically undergoes pollination, a critical stage for determining yield potential, which can be limited if it remains hot and dry.
Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export.