US corn and soyabean futures rose on Tuesday as traders squared positions a day ahead of a monthly US Department of Agriculture report in which the government is expected to pare its stocks forecasts for both crops, traders said. Wheat futures fell on expectations for much-needed rains in parts of the US Plains in the next two weeks, but trading was subdued.
At the Chicago Board of Trade as of 11:15 am CDT (1615 GMT), May corn was up 5 cents at $5.04-1/4 per bushel after reaching a near one-week high of $5.04-1/2. May soyabeans were up 8-1/4 cents at $14.72-1/2 a bushel, while May wheat was down 1-1/2 cents at $6.74-3/4 a bushel. The USDA in its monthly supply/demand report on Wednesday is likely to lower its forecasts of US 2013/14 corn and soyabean ending stocks due to robust exports, according to analysts surveyed by Reuters.
"Much of what we are seeing is simple positioning ahead of tomorrow's supply and demand report," said Karl Setzer, a market analyst at the MaxYield Co-operative in West Bend, Iowa. Corn drew additional support from a sluggish start to planting in the heart of the US Corn Belt, where soil temperatures are still too cold after a harsh winter.
"The weather outlook for planting is slowly improving, but also offers enough potential delays to keep concerns elevated," Citigroup futures specialist Art Liming wrote in a market note. Gains were limited by news that China's quarantine bureau approved corn imports from Brazil, adding to a growing list of suppliers competing for shipments to the second-largest consumer of the grain. Wheat fell on technical selling and expectations that USDA will raise its forecast of US 2013/14 wheat ending stocks, after the government's report of existing stocks as of March 1 came in above trade estimates.
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