US corn, wheat tick higher after selloff; soy dips
Soybeans dipped 0.2 percent but the market is likely to be supported by forecasts of freezing temperatures in parts of the US Midwest.
The US Department of Agriculture has slashed its US corn usage and exports for 2011/12, while wheat faces stiff competition from Black Sea producers.
"Yesterday, we saw a sharp selloff in corn and wheat and in early trading for today there is some bargain hunting as corn supplies are tight," said Lynette Tan, an analyst with Phillip Futures in Singapore.
"However, there could be pressure on corn from the advancing harvest in the short term but for the longer term, the bullish uptrend is intact."
Chicago Board of Trade benchmark December wheat rose 0.3 percent to $7.03-3/4 a bushel by 0252 GMT, after dropping to a low of $6.96 a bushel on Tuesday, the lowest since August 9.
December corn gained 0.2 percent to $7.24-1/2 a bushel, while November soy fell 0.2 percent to $13.88-1/2 a bushel.
The US Agriculture Department on Monday slashed its US corn usage forecast for the 2011/12 marketing year by a total of 400 million bushels, cutting corn use by exporters, ethanol makers and livestock producers. That largely offset USDA's 417-million-bushel drop in its corn production outlook.
It cut its US corn export forecast for the 2011/12 marketing year by 100 million bushels in a monthly report, citing competition from Ukraine, Brazil and Argentina.
US wheat faced aggressive competition in the world market from Russia and other Black Sea suppliers, and crops grown in the southern hemisphere will soon be available.
Australian wheat exports may reach a record 20.4 million tonnes in the 2011/12 marketing year, the country's chief commodities forecaster said.
A crop-damaging freeze was expected in the US Midwest this week, raising more concerns about the harvest potential of crops that have suffered through adverse weather conditions since spring planting.
The immature soybean crop in the Midwest was most at risk to damage from the cold snap, which was forecast to arrive about two to 2-1/2 weeks earlier than usual.
The market noted news that Argentina's 2011/12 soy harvest is expected at 52 million to 53 million tonnes and this season's corn crop is seen at about 30 million tonnes, according to the country's farm secretary.
Argentina is the world's top exporter of soyoil and soymeal, as well as the third-largest global supplier of soybeans. The South American country is also the No. 2 corn exporter after the United States.
Copyright Reuters, 2011