Corn, soy nearly flat as ample stocks cap rallies; wheat firm

CHICAGO: US corn and soybean futures were little changed on Friday in dull trade as pressure from ample domestic stocks offset support from worries about planting delays in the Midwest following a blizzard this week, traders said.

As of 12:55 p.m. CDT (1755 GMT), Chicago Board of Trade May corn was down 1/4 cent at $3.59-3/4 per bushel, staying inside of Thursday's trading range. CBOT May soybeans were up 1/4 cent at $8.95-1/2 a bushel and May wheat was up 1-1/2 cents at $4.62 a bushel.

All three commodities were on track to post modest weekly declines after the US Department of Agriculture on Tuesday raised its US and world ending stocks forecasts for corn and wheat, and traders waited for signs of progress in US trade talks with top global soy buyer China.

"If you look at our export profiles for grains, we are probably not on pace for corn, beans or wheat. Until we get an agreement with China, and they step in and start buying large sums of soybeans or corn, we are not going to hit the USDA numbers. And that is overhanging any rally attempts," said Brian Hoops, president of Midwest Market Solutions.

"These big ending stocks we have likely are going to get even bigger in May or maybe the June (USDA supply/demand) report," Hoops said.

Still, corn futures had underlying support from worries about planting weather in the US Midwest, with soils still saturated, or even snow-covered, in western areas. The USDA is scheduled to release updated US planting progress figures for corn and spring wheat on Monday.

Producers have been seeding crops in a few areas.

"It's really wet across parts of the western belt, like Nebraska and the Dakotas ... But there are guys planting in southwest Iowa; Missouri is going like crazy," Hoops said.

"There is a lot of work being done, but the news focus has been on those wet areas, and that is providing underlying support," Hoops said.

Brokers were also monitoring harvest prospects in South America. The Buenos Aires Grains Exchange on Thursday raised its forecast for Argentina's soybean harvest to 55 million tonnes, a day after the Rosario exchange increased its estimate for the crop.

Brazilian agricultural statistics agency Conab raised its estimates for the country's soy and corn harvests.

"The corn market is heavy and there could be a record South American harvest if you combine the Brazil and Argentina crops," said Nathan Cordier at consultancy Agritel.

CBOT wheat futures had little reaction to news that Egypt's main state wheat buyer purchased 240,000 tonnes of wheat in an international tender, including 180,000 tonnes of Romanian origin and 60,000 tonnes of Ukrainian wheat.

Excluding costs for ocean freight, the lowest offer in the tender was for US soft red winter wheat, but when freight costs were added, the Romanian and Ukrainian wheat was cheaper.