Corn, soy firm as rainy US Midwest outlook threatens harvest

CHICAGO: US corn and soybean futures firmed on Thursday on concerns that several days of rainy weather expected across the U.S. Midwest could disrupt harvesting of what are forecast to be bumper U.S. crops.

Weather forecasters expect heavy rain across much of the western and central Midwest over the next week, likely soaking mature corn and soybeans in major producing states including Iowa, Illinois and Minnesota.

The wet pattern is expected to delay harvesting that has thus far been ahead of the normal pace.

"There's more focus on the weather today. These extended forecasts are showing consistent rain and maybe a consistent harvest delay that will last more than just a few days," said Rich Nelson, chief strategist with Allendale Inc.

Strong weekly export sales reported by the U.S. Department of Agriculture added to the firm tone in corn and soybeans, although traders remain concerned about the lagging pace of soybean sales so far this season due to a lack of demand from China.

The USDA said exporters sold a net 1.43 million tonnes of corn last week and a net 1.52 million tonnes of soybeans, both near the high end of a range of trade estimates.

However, the soybean sales featured a cancellation of 124,100 tonnes in sales to China, and season-to-date sales remain 13 percent behind a year ago. Meanwhile, corn sales so far this season are 63 percent ahead of a year ago, USDA data showed.

Chicago Board of Trade December corn futures rose 3-1/4 cents to $3.68 a bushel by 11:47 a.m. CDT (1647 GMT), while November soybeans gained 3 cents to $8.64-1/2 a bushel. Both contracts faced technical resistance at their 50-day moving averages.

Wheat futures followed corn and soybeans higher, with CBOT December futures up 2-3/4 cents at $5.18 a bushel.

Gains in wheat were capped by lacklustre export demand amid steady global competition from rival suppliers.

Major importer Egypt bought three cargoes of Russian wheat via a snap tender on Thursday. No U.S. wheat was offered in the tender.

The wheat market has been supported this week by a threat from Russia's agriculture safety watchdog to suspend loading at some locations, though the agency later played down the threat.