SINGAPORE: Chicago corn futures gained more ground on Thursday as investors evened out positionsahead of a U.S. government report which is likely to show a decline in inventories.
Wheat edged lower, although tensions in the Black Sea region kept a floor under the market, while soybeans were largely unchanged.
“The focus is on U.S. stocks report and U.S. planting progress,” said one Singapore-based trader. “Conab is also expected to update Brazilian production forecasts.”
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.34-3/4 a bushel, as of 0305 GMT. Wheat fell 0.5% to $5.56 a bushel and soybeans were flat at $11.64-3/4 a bushel.
Market participants are adjusting their positions before the release of U.S. Department of Agriculture (USDA) monthly global supply-demand data and Brazilian agency Conab’s national crop forecasts on Thursday.
Wheat under pressure on supply outlook; corn, soybeans climb
The USDA report is projected to show that 2023-24 U.S. ending stocks for corn fell to 2.102 billion bushels from 2.172 billion bushels last month, according to a Reuters survey of analysts. They predicted wheat and soybean stocks will rise.
The market is also monitoring conditions for U.S. corn and soybean plantings that are expected to accelerate in the coming weeks.
Russian strikes on southern Ukraine encouraged light short-covering in wheat earlier, traders said. Both countries are major grain exporters.
The USDA confirmed private sales of 254,000 metric tons of U.S. soybeans for delivery to undisclosed destinations in the marketing year that will begin on Sept. 1, 2024. The department is scheduled to issue weekly U.S. grain and soybean export sales data on Thursday.
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Wednesday, traders said. Funds were net sellers of soybean and soymeal futures contracts.
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