SINGAPORE: US corn fell more than 1 percent on Wednesday, after sliding by its daily limit in the last session on fears of a Japanese nuclear catastrophe and expectations that grains exports to the nation might be hampered following the earthquake.
Wheat rose 1.6 percent, while soybeans gained 0.6 percent in early Asian trade on bargain hunting after a steep selloff.
FUNDAMENTALS
* On Tuesday, corn futures at the Chicago Board of Trade ended at their maximum daily trading limit of 30 cents, or 4.5 percent, at $6.36 per bushel, the lowest close since Jan 12.
* Wheat fell 53 cents, or 7.35 percent, to $6.67-3/4. Soybeans shed 70 cents to settle at $12.70. Both delved into prices last traded on Dec. 1.
* The Chicago Mercantile Exchange said it would expand limits for Wednesday's trade to 45 cents a bushel for corn, $1.05 for soybeans, 3.5 cents for soyoil, 30 cents for oats, 75 cents for rough rice. Wheat futures retained their limits of 60 cents.
* Japan raced to avert a catastrophe after fire broke out on Wednesday at a quake-crippled nuclear plant that has already sent low levels of radiation wafting into Tokyo and prompted some people to flee the capital.
* The prospects of a temporary reduction in Japanese grain purchases was also a negative. Japan is the world's biggest importer of corn and third-largest of soybeans, the main ingredients in animal feed.
* The world's No. 3 economy also is the fourth-biggest wheat importer and plans to buy 4.96 million tonnes of milling wheat in the year to March 31.
* The flow of soy, corn and other goods to Brazil's No. 2 port, Paranagua, continued at a near standstill on Tuesday after heavy rains over the weekend damaged the access road and railway.
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