SINGAPORE: Chicago corn rose on Tuesday, recouping some of the previous session’s losses after a US government report lowered crop ratings following hot and dry weather, while soybeans eased, tracking losses in oil prices.
Wheat prices inched higher amid disruptions to grain shipments from the Black Sea region. “US crop ratings have declined which is (a) bit of (a) supporting factor for prices, but weaker oil is dampening the sentiment,” said a grains trader in Singapore.
The most-active soybean contract on the Chicago Board of Trade fell by a quarter of a cent to USD12.13-1/2 a bushel, as of 0323 GMT, and corn gained 0.4percent to USD4.76 a bushel. Wheat rose 0.3percent to USD6.61-3/4 a bushel.
The US Department of Agriculture said after the market closed on Monday that 63percent of the country’s corn crop was rated in good-to-excellent condition as of Sunday, down from 67percent a week earlier.
Ratings for soybeans declined to 63percent, from 66percent a week earlier, it said. Ratings for both crops were below the average analyst estimate.
Oil prices fell 1percent as market participants continued to weigh a pause in US strikes on Iran, which has raised hopes of a diplomatic solution to the conflict and normalisation of Middle East energy flows. Soybeans and corn fell sharply on Monday, tracking weakness in crude oil. Prices of agricultural products are often influenced by energy markets, with the rapidly growing use of farm crops in biofuel production.
Attacks on grain infrastructure and ships by Russia and Ukraine continued to hamper the movement of cargoes, threatening supplies to importers in the Middle East, Africa and Asia. Investor attention lingered on reports that Ukraine was discussing possible mechanisms to keep vessels moving through its major export ports, raising the prospect of Black Sea exports avoiding a major disruption, despite a Ukrainian denial.
Russian wheat export prices steadied last week after a recent rally, as high freight rates dampened demand and as global prices fell on rumours that recent restrictions on shipping in the Black Sea may be eased.
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