Chicago corn edges higher as traders await key USDA supply outlook

BEIJING: Chicago Board of Trade corn futures edged higher on Thursday as traders monitored conflict in the Black Sea region and adjusted positions ahead of a closely watched US Department of Agriculture supply-and-demand report due this week.

Wheat futures declined, while soybeans futures were flat.

The most-traded corn contract on the Chicago Board of Trade (CBOT) nudged 0.14% higher to $5.28-1/5 a bushel by 0316 GMT.

CBOT Wheat dropped 0.3% to $7.25-1/4 a bushel, while soybeans were unchanged at $13.09 a bushel.

Grain markets are turning their attention to the USDA’s supply-and-demand report due on Friday, though expectations of poor yields in the US Corn Belt have continued to underpin corn prices.

The report is expected to provide a clearer indication of the extent to which hot, dry weather this summer damaged crops in the US Midwest, particularly soybeans.

In a Reuters poll, analysts on average predict that the USDA will estimate corn yield for the month at 178.2 bushels per acre.

The weather pattern in the US Midwest is expected to be mildly wetter in the coming weeks, but only limited delays to the soybean harvest are predicted, according to forecaster Commodity Weather Group.

Argentina, the world’s third-largest corn exporter, is expected to ship a record 10 million metric tons of corn in August and September, supported by a bumper harvest and strong international demand as buyers seek alternatives to war-disrupted Ukrainian supplies and European crops damaged by extreme heat.

Brazil’s corn exports are seen reaching 5.2 million tons in September vs. 6.98 millions tons in the same period last year, according to grain exporters union ANEC.

Meanwhile, market participants continue to assess US diplomatic efforts to end the Black Sea conflict, which has disrupted grain exports globally.

Ukraine struck targets at Novorossiysk including a naval base and a terminal for loading oil, President Volodymyr Zelenskiy said Wednesday.

Traders cited unconfirmed talks that grain infrastructure at the port had also been damaged.

However, comments by the Kremlin saying that Russia hopes US-mediated talks will resume soon and that it sees Abu Dhabi as a preferred venue for such talks put the focus back on diplomatic efforts.