CANBERRA: U.S. corn futures steadied on Tuesday, after improving crop weather in South America and expectations of increased planting by U.S. farmers triggered a speculative sell-off that drove prices down from 18-month highs.
Wheat and soybean futures rose slightly, having been dragged down by corn in recent days, analysts said.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.97-1/4 a bushel at 0636 GMT, but down from a high of $5.14 hit on Friday.
“Maize has been on a strong rally in recent weeks, hitting highs not seen since August of 2023,” said Andrew Whitelaw at agricultural consultants Episode 3 in Canberra.
“This has been as a result of declining stocks but also a slight weakness in the U.S. dollar,” he said, predicting price weakness in the coming days.
“We expect that U.S. plantings will be up as a result of attractive pricing, and this along with rain forecasts for Argentina and Brazil is taking some of the shine off corn futures.”
Corn slips from 18-month high on expectations of expanded US sowings
Rapid planting of Brazil’s safrinha corn crop in recent weeks has also eased fears that late sowing would reduce yields, StoneX analyst Arlan Suderman wrote in a note.
Commodity funds hold a massive net long position in CBOT corn futures, leaving the market prone to long liquidation that drives down prices. Funds were net sellers of corn on Friday and Monday, traders said.
In other crops, CBOT wheat was up 0.1% at $5.94 a bushel and soybeans rose 0.4% to $10.52 a bushel.
Wheat export prices in Russia, the world’s biggest wheat shipper, continued their upward trend last week due to a stronger rouble and lower shipments.
Meanwhile, Russia’s state weather forecaster said late winter frosts in the country’s southern breadbasket regions were unlikely to inflict significant damage on winter crops.
In soybeans, consultants AgRural trimmed their forecast for Brazil’s crop to 168.2 million metric tons from 171 million tons, but that still represents a record-breaking harvest.
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