SINGAPORE: Chicago corn futures edged lower on Thursday, as traders locked in profits after a recent rally over concerns about dry weather conditions in key areas of the U.S. Midwest.
Soybean and wheat futures were also headed for losses.
Corn futures were down 0.8% at $6.24 a bushel, as of 0353 GMT, after hitting a more than two-month high in the previous session.
Soybean, wheat futures headed for gains
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.6% at $13.68-1/2 a bushel, and wheat futures gave up 0.5% at $7.44-1/2 a bushel after hitting their highest since late-February on Wednesday.
The U.S. Department of Agriculture cut its corn and soy crop ratings more than expected on Tuesday, including steep losses in top-producing states Iowa and Illinois, as a deepening drought stressed crops in the heart of the Midwest farm belt.
Clearly, the most important U.S. corn production area is facing the most adverse conditions with Iowa and Illinois seeing double-digit declines in good-to-excellent crops and double-digit increases in poor-to-very-poor corn conditions, according to a note from commodities research firm Hightower.
Looking at 24-hour totals, no rain occurred through the primary corn growing belt, with rains in the Southeast portion of the growing region staying very light, the note added.
Argentina became the second main destination for Brazilian soybeans in the first five months of 2023, as it had to boost imports in response to a historic drought that severely affected its crop.
Taiwan’s MFIG purchasing group bought about 65,000 metric tonnes of animal feed corn expected to be sourced from Brazil in an international tender on Wednesday, European traders said.
An importer group in Thailand was believed to have purchased about 55,000 metric tonnes of animal feed wheat expected to be sourced from the Black Sea region or Australia, European traders said on Wednesday.
Commodity funds were net buyers of CBOT corn, soybean, wheat and soymeal futures contracts on Wednesday and net sellers of soyoil, traders said.