Corn consolidates after rallying on US storm damage

PARIS: Chicago corn ticked lower on Friday, pausing after hitting a four-week high the previous session as traders assessed the extent of storm damage in the Midwest that has raised doubts over the government's record crop forecast.

Soybeans also inched down after rallying to a two-week high on Thursday as brisk Chinese demand took attention away from the US Department of Agriculture's (USDA) outlook for a massive autumn harvest.

US wheat was almost flat, with large global supplies including in major exporter Russia continuing to cap prices.

The most-active corn contract on the Chicago Board Of Trade (CBOT) was down 0.4pc at 3.37-1/2 by 1108 GMT, after surging to a four-week high of $3.40-3/4 on Thursday.

Chart resistance at $3.40 helped curb the rally, traders said.Over the week, the contract was up 5pc and set to break a run of five straight weekly losses.

A storm that hit the Midwest grain belt on Monday potentially affected 10 million acres of farmland in Iowa, the top US corn growing state, according to state authorities.

The potential damage tempered reaction to USDA forecasts on Wednesday projecting a record corn harvest and the second-biggest soybean crop ever, fuelling short-covering after recent multi-week lows for Chicago futures.

"Corn seems to have had a bit of support from storm damage this week but that is likely to be limited, given the dismal demand," said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities.

Corn has suffered from a drop in demand for ethanol biofuel and reduced restaurant consumption due to coronavirus lockdown measures.

CBOT soybeans were down 0.3pc at $8.96-3/4 a bushel, but still set for a first weekly gain in three weeks.

Traders are watching to see if the USDA announces further soybean export sales to China after a recent run of deals.

CBOT wheat was up 0.1pc at $4.97-1/4 a bushel and also little changed over the week.