SINGAPORE: Chicago corn climbed to a more than two-week high on Thursday, with bargain-buying supporting prices after recent losses, while soybeans eased, paring some of last session’s gains.
Wheat slid on harvest pressure and positioning ahead of the US Independence Day holiday weekend. Markets will be closed on Friday.
“US weather is pretty normal for corn and we have (a) big supply coming from Brazil,” said one broker of agricultural commodities.
“Prices are going to remain under pressure but a lot of news on the supply front has already been factored into the market and there is likely to be some buying interest at these levels.”
The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.9% to $4.37-1/4 a bushel as of 0307 GMT, after hitting its highest since June 16 earlier in the session.
Soybeans fell 0.1% to $10.47-1/4 a bushel and wheat lost 0.1% to 5.63-1/4 a bushel.
Largely favourable crop development weather had dragged corn and soybean prices to multi-month lows in recent sessions as warm temperatures and timely rains boosted US harvest prospects.
The optimal conditions coincide with harvesting by rival exporter Brazil of what some analysts expect to be a record second-corn crop.
Corn stuck near lows on supply pressure
Abundant supplies are hanging over the wheat market, with US farmers progressing with their harvests, while crops in Europe and the Black Sea region are expected to be sizeable despite harsh weather, including a heatwave in western Europe this week.
Dry weather in southern Ukraine during sowing and plant growth stages has significantly reduced winter wheat and barley yields, scientists at the Ukrainian National Academy of Agrarian Sciences said on Wednesday.
Commodity funds were net buyers of CBOT corn, wheat, soybean and soyoil futures contracts on Wednesday and net sellers of soymeal, traders said.