SINGAPORE: Chicago corn futures rose on Wednesday, recouping the previous session’s losses on bargain buying and positioning ahead of US government stock data due later this week, although expectations of large global supplies kept a lid on the market.
Soybeans and wheat also gained ground.
“The market is just waiting for the US stocks report with some buying interest at these levels,” said one Singapore-based trader. “Global supplies are looking comfortable.”
The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.4% to $4.81-1/2 a bushel, as of 0310 GMT.
Soybeans added 0.1% to $13.03-3/4 a bushel and wheat climbed 0.5% to $5.91-3/4 a bushel.
Ample corn supplies from South America and the harvest of the second-largest corn crop on record in the United States are providing headwinds to prices.
The US Department of Agriculture (USDA) is slated to issue a closely watched, quarterly report on US grain stocks at the end of the week.
Russian attacks on Ukrainian ports are raising concerns over wheat supplies, although plentiful Russian supplies are weighing on the market.
Ukrainian officials said Russia struck Ukrainian port infrastructure and grain storage facilities on Tuesday, but also reported some progress on the front lines in the three-month old counteroffensive by its forces.
Algeria tenders to buy around 90,000 T corn, 30,000 T barley
Countries from the EU’s eastern wing on Tuesday called on the European Commission to boost checks on solidarity lanes for Ukrainian grains and introduce a deposit system for exports.
The EU created alternative land routes, so-called Solidarity Lanes, for Ukraine to use to export its grains and oilseeds, but its neighbours have argued that cheap Ukrainian agricultural goods meant to be in transit get sold locally, harming their own farmers.
A weekly USDA report released late on Monday showed 50% of the US soybean crop rated “good” or “excellent,” down from 52% in the previous week and the lowest for this time of year since 2013.
Commodity funds were net buyers of CBOT soymeal, soybean, soyoil and wheat futures contracts on Tuesday, traders said.
Funds were net sellers of corn futures.
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