Wheat firms, gains capped by US harvest hopes; corn recovers
- The most-active wheat contract on the Chicago Board of Trade added 0.8% to $5.52-3/4 a bushel by 1040 GMT.
- The agency will issue its latest World Agriculture Supply and Demand Estimates report later on Thursday.
- US ethanol plants have shut down as fuel demand collapsed as people avoid travel to try to limit the spread of the virus.
Corn edged higher, recouping most of the losses from the previous session, as traders squared positions ahead of a widely-watched US government report on world supply and demand.
"There is scope for further decline in Chicago wheat futures," one Singapore-based trader said.
"As of now, the US crop looks good, but we will have a better picture about the global supply situation at the end of April. We will have a better picture for the winter crops across several countries, the spring planting season will start and Australia will commence planting."
The most-active wheat contract on the Chicago Board of Trade added 0.8% to $5.52-3/4 a bushel by 1040 GMT.
Corn was up 0.7% at $3.32-1/4 a bushel and soybeans gained 0.4% at $8.58-1/4 a bushel.
The US Department of Agriculture (USDA) reported better-than-expected crop conditions on Monday, rating 62% of the crop as good-to-excellent. The report beat analyst expectations that only 56% of winter wheat would achieve the rating.
The agency will issue its latest World Agriculture Supply and Demand Estimates report later on Thursday.
After weather-related problems last year and following a period of low prices, agriculture analysts are likely to be eager to scrutinise this year's US corn campaign.
On the international wheat market a symbolic 60,000 tonne cargo of Russian wheat has set sail for Saudi Arabia from a Black Sea port seven months after conditions were set to allow the trade, three sources told Reuters on Thursday.
Corn prices have been pushed lower as the disruption surrounding the novel coronavirus has limited demand for ethanol, which provides a significant market for the grain.
US ethanol plants have shut down as fuel demand collapsed as people avoid travel to try to limit the spread of the virus.
Asian shares rose on Thursday on hopes the COVID-19 pandemic is nearing a peak and that governments would roll out more stimulus measures, while expectations a meeting on Thursday will reach agreement on limiting oil output bolstered crude prices.
Despite the beginnings of recovery in China, some traders are questioning the country's appetite for US soybeans.
China released 500,000 tons of soybeans from state reserves on Tuesday, as rain delays slowed shipments from Brazil. That is despite a Phase 1 trade deal between China and the U.S, that promised a slew of US agricultural exports, including soybeans.
Commodity funds were net sellers of CBOT corn, soybean, soymeal, soyoil and wheat futures contracts Wednesday, traders said.