US corn falls from contract high on profit-taking
Wheat futures also took a hit after rising for the 10th day on Tuesday but still remain near 2-month highs as poor crop conditions in North America and Germany tighten supply outlooks.
Soybeans held steady at a one-month high as concerns mount that dry weather in the United States may reduce yields as the crop enters the critical podding stage.
The benchmark corn for December delivery eased 0.13 percent to $7.42-1/2 per bushel after notching a contract high of $7.44 on Tuesday, up from the previous high of $7.36-1/2 per bushel set on Monday.
Wheat for September delivery dropped 0.29 percent to $7.82-1/4 per bushel after surging 3.0 percent on Tuesday.
New-crop soybean futures for November delivery were little changed, rising 0.02 percent to $13.97-1/2 per bushel after gaining 0.9 percent on Tuesday.
Waning US crop prospects led weather forecaster Commodity Weather Group on Tuesday to lower its estimate for US 2011 corn production to 12.485 billion bushels from its previous outlook for 12.621 billion and below the US government's current outlook for 12.914 billion bushels.
Low US spring wheat yields, drought in the US Plains hard red winter wheat belt and threats to Germany's harvest due to excessive rain are keeping the wheat market on the boil.
Harsh weather in the United States has trimmed supplies of high protein spring wheat and a drought threatens to reduce US hard red winter supplies.
Australia sold 35,000 tonnes of high protein wheat to Thailand last week, which is believed to be the nation's first new-crop deal in Asia as buyers step up purchases amid renewed concerns over global supplies of top quality grains, trade sources said.
Meanwhile, Egypt, the world's largest wheat importer, has bought 180,000 tonnes of Russian wheat for Oct. 11-20 shipment on a free on board basis, the main government wheat buyer said on Tuesday.
Iraq issued a tender on Tuesday to buy a minimum of 50,000 tonnes of wheat from all origins with a closing date of Sept. 6, a spokesman for the Iraqi grain board said. Offers must be valid until Sept. 9, spokesman Amer Abdul-Aziz said. US soybeans crop conditions are also declining due to dry weather as the crop goes through its weather-sensitive pod-setting stage. US pod-setting soy and filling corn will receive some rainfall midweek but this week's rain will miss some of the driest crop areas, an agricultural meteorologist said on Tuesday.
The US dollar fell on Tuesday on hopes the Federal Reserve will ease policy further to stimulate a flagging US economy, while better-than-expected German and Chinese factory data tempered worries about global growth.
Oil rose on Tuesday along with equities on hopes that the US Federal Reserve might indicate fresh stimulus measures later this week, with oil also drawing support from fighting in Libya and disrupted Nigerian exports. US light crude futures for October delivery rose 0.41 percent to $85.79 percent in early Asian trade.
US stocks shot 3 percent higher on Tuesday on speculation Federal Reserve Chairman Ben Bernanke this week would signal new help for the economy, giving investors hope a four-week rout was nearing an end. Bernanke speaks to a central bank conference on Friday in Jackson Hole, Wyoming. The Dow Jones industrial average was up 322.11 points, or 2.97 percent, at 11,176.76.
Copyright Reuters, 2011