PARIS/SINGAPORE: Chicago corn eased on Wednesday to remain near contract lows as favourable crop weather was expected to continue in the U.S. Midwest, reinforcing the prospect of a bumper harvest.
September corn on the Chicago Board of Trade was down 0.4% at $4.04-1/2 a bushel by 1132 GMT, holding near Tuesday’s contract low of $4.00-1/4. New-crop December futures were 0.5% down at $4.20, also just off a Tuesday’s low of $4.16-1/2.
The U.S. Department of Agriculture surprised the market in a report on Monday, which showed better-than-anticipated corn crop conditions that were the best since 2018 for the time of year.
With a mix of showers and warm weather set to continue, traders currently see limited threats to corn crops as they approach the crucial pollination stage.
“Corn prices are down as strong U.S. crop ratings and generally favourable weather will continue to put pressure on prices,” said one agricultural broker.
Optimal U.S. growing conditions come as rival exporter Brazil is harvesting what some analysts anticipate will be a record second-corn crop.
Corn eases on supply hopes, soybeans rise ahead of US reports
The most-active CBOT soybeans lost 0.6% to $10.33-1/2 a bushel.
Expectations of ample supplies have also weighed on the soybean market, with prices hitting their lowest since April in the past week.
But the oilseed has steadied since Tuesday, with traders saying it found impetus in rising soyoil prices after a tax-cut and spending bill adopted by the U.S. Senate included a measure to restrict biofuel credits to North American feedstock.
Soyoil is widely used to produce biodiesel.
“Soyoil is rallying due to the fact foreign feedstocks won’t get subsidies,” a European trader said of the biofuel measure.
CBOT soyoil was up 1.5% while Canadian canola futures were up 1.8%.
In wheat, CBOT futures edged up 0.1% to $5.49-3/4 a bushel after touching a one-week peak.
Traders say the approaching U.S. Independence Day holiday, which will see U.S. markets close on Friday, has encouraged investors to adjust their large short positions in wheat.
Ample supplies were still hanging over the wheat market, with U.S. farmers progressing in harvest work and crops in Europe and the Black Sea region expected to be sizeable despite harsh weather including a heatwave in western Europe this week.