Corn eases on improved US crop condition, wheat firms

SINGAPORE: Chicago corn futures lost ground on Tuesday after a weekly US government report showed improvement in crop condition following rains in the Midwest grain belt, while soybeans ticked higher.

Wheat prices rose for the first time in four sessions, led higher by concerns over tightening global supplies.

“US weather over the next few weeks is key to determining soybean and corn yields and can improve production prospects,” said Pranav Bajoria, a director at Singapore-based brokerage Comglobal.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.2% to $4.98-1/2 a bushel, as of 0336 GMT and soybeans rose 0.5% to $13.52-1/2 a bushel.

Wheat added 0.5% to $6.49-1/4 a bushel. Corn ratings improved to 55% in good-to-excellent condition from 51% last week and above the average expectation in a Reuters survey for 53%.

However, the rating is the worst for this time of year since 2012 when drought in the United States raised global crop prices.

Just 51% of soybeans were in good-to-excellent condition as of Sunday, up from 50% last week but below analysts’ expectations of 52%.

Funds sell CBOT corn, soybeans amid surprising US acreage report

Only 47% of the spring wheat crop was rated as good-to-excellent, down from 48% a week ago, defying analysts’ expectations for an improvement to 49%.

Brazilian farmers have harvested through last Thursday 27% of the area planted for their second corn crop, agribusiness consultancy AgRural said on Monday, up 10 percentage points from the previous week but still lagging 2022 levels.

At the same time last year, 41% of the corn fields in Brazil’s center-south region had been reaped, the consultancy said.

Export prices for Russian wheat remained largely flat last week, analysts said, as traders waited for signals about the Black Sea grain export deal ahead of its renewal deadline next Monday.

Commodity funds were net buyers of CBOT soybean, soyoil, corn and soymeal futures contracts on Monday and net sellers of wheat futures, traders said.