PARIS/BEIJING: Chicago corn futures edged up on Tuesday after hitting a one-month low in the previous session, while wheat steadied, although the cereals remained curbed by favourable U.S. crop conditions and worries over international trade tensions.
Soybeans eased for a second day as traders awaited clearer indications that Washington and Beijing could enter negotiations to resolve their tariff stand-off.
A weaker dollar and a rebound in crude oil from four-year lows lent background support to grains.
The most-active corn contract on the Chicago Board of Trade was up 0.5% at $4.56-1/2 a bushel by 1035 GMT, holding above Monday’s one-month low of $4.53-1/4.
CBOT wheat was up 0.8% at $5.35-1/4 a bushel after coming off a near one-week low touched earlier in the session. CBOT soybeans ticked down 0.1% to $10.44-3/4 a bushel.
The U.S. Department of Agriculture’s weekly crop progress report, released after Monday’s close, showed 51% of U.S. winter wheat rated good-to-excellent, slightly ahead of the average analyst projection and the highest for this time of the year since 2020.
Soybeans fall as traders await US-China trade talks
“Abundant rainfall has noticeably improved growing conditions,” Commerzbank said of U.S. wheat crops. “The harvest starting in a few weeks could therefore show higher yields than previously expected.”
Together with rain forecast in the Black Sea region that encompasses top exporter Russia, the boost to U.S. harvest prospects have offset hopes that falling wheat prices will stir demand, including talk of rare U.S. wheat sales to Morocco.
Dry weather in China, where the local government in the major grain-growing province of Henan issued a warning on Tuesday about the threat of dry, hot winds to wheat growth, was nonetheless being monitored. Rumours of Chinese wheat import purchases had helped futures regain some ground last week.
The USDA’s weekly update showed that corn planting was 40% complete, ahead of the five-year average of 39% but slightly below analyst expectations of 41%. Soybean planting was 30%, above the five-year average of 23%, but just shy of the 31% forecast.
Favourable harvest prospects in Brazil were also keeping a lid on corn prices, countering support from brisk U.S. exports.
In the trade battle between the U.S. and top soybean importer China, the Chinese commerce ministry said on Friday that it is “evaluating” a U.S. offer to hold talks on tariffs.
U.S. President Donald Trump’s proposed funding cuts for the Environmental Protection Agency, meanwhile, have unsettled traders, who worry it could reduce demand for biofuels made from soy and other oils.
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