Corn rebounds from near 2-month low on variable yield reports

SYDNEY: US corn edged higher on Tuesday, rebounding from a near two-month low in the previous session, as reports of variable yields from a widely watched crop tour raised fears that production will not match official estimates.

Soybeans rose, despite easing concerns about potential production shortfalls, while wheat rose more than 0.5 percent.

The most active corn futures on the Chicago Board of Trade were up 0.4 percent at $3.64-1/2 a bushel by 0330 GMT. They closed down 0.8 percent in the previous session, when prices hit their lowest since June 27.

Analysts said the findings from the Farm Journal Midwest Crop Tour were providing some support to prices.

"The market remains sceptical of the US Department of Agriculture's corn yield estimates. The crop tours might shed some light whether that scepticism has substance or is simply stubbornness," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The Farm Journal Midwest Crop Tour estimated South Dakota corn yields at 147.97 bushels per acre, down from 149.78 bushels per acre in 2016 and the tour's three-year average of 156.14 bushels per acre.

The USDA said 62 percent of the corn crop was in good to excellent condition, matching analysts expectations.

The most active soybean futures were up 0.5 percent at $9.41 a bushel, having closed down 0.2 percent on Monday.

The most active wheat futures were up 0.6 percent at $4.39-3/4 a bushel, after ending down 1.2 percent on Monday.

The USDA said 60 percent of the soybean crop was in good-to-excellent condition, a small improvement on last week and in line with market forecasts.

The condition of the spring wheat crop rose, the USDA said, surprising the market that had expected the ratings to be unchanged.