CHICAGO: US corn futures rose nearly 2% on Tuesday on concerns about tightening grain supplies while soyabean futures advanced on strong global vegetable oil markets, analysts said.

Wheat futures turned lower on profit-taking after rallying on supply concerns a day earlier. As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Trade September corn futures were up 8-3/4 cents at $5.54 per bushel, with new-crop December corn up 10 cents at $5.434.

CBOT August soyabeans were up 12-1/2 cents at $14.16-3/4 a bushel, while CBOT September wheat was down 4-1/2 cents at $6.36-1/4 a bushel.

Corn futures firmed on optimism about export demand for US supplies, given declines in the size of Brazil’s corn harvest. The US Department of Agriculture on Monday lowered its estimate of Brazil’s 2020/21 corn production to 93 million tonnes, from 98.5 million a month earlier.

“The bottom line with the Brazil crop sinking is that more business has a chance to come to the US or Ukraine, or a split. The trade believes the demand (in USDA’s forecast) is too low,” said Don Roose, president of Iowa-based US Commodities.

Brokers were also considering whether the USDA might eventually lower its forecast of the US 2021 corn yield from its current projection of 179.5 bushels per acre, signalling tighter supplies of new-crop corn.

Soyabeans rose as CBOT soyaoil futures followed strength in ICE canola and Malaysian palm oil futures tied to concerns about edible oil supplies. CBOT wheat was choppy, turning lower after early advances as traders digested data from Monday’s monthly USDA supply/demand report. The USDA cut its estimate of US wheat production due to drought in the northern Plains spring wheat belt.

Minneapolis Grain Exchange September spring wheat futures were up 1-3/4 cents at $8.59 a bushel after setting a contract high at $8.70-3/4, but CBOT and K.C. wheat futures turned lower at mid-session.