US grain and soyabean futures jumped early on Tuesday on reports of lower-than-expected corn yields and expectations that the Agriculture Department may lower its harvest estimates at the end of the week. Short-covering in the markets ahead of the release of Agriculture Department (USDA) crop reports on September 11 helped lift wheat futures from a five-year low reached on Friday. Still, large global supplies and stiff competition for export business kept a lid on prices.
Traders believe the USDA may cut its yield estimates for corn and soyabeans in the monthly reports because of unfavourable weather, said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa. Results from the early corn harvest in the Mid-South and Delta have already been disappointing, compared with expectations, he added.
Chicago Board of Trade December corn advanced 1 percent to $3.66-3/4 a bushel by 11:25 am CDT (1625 GMT). November soyabeans climbed 1.6 percent to $8.80-3/4. December wheat gained 1.6 percent to $4.75 a bushel. The thinly traded front-month wheat contract hit a five-year low of $4.55-1/2 on Friday. Gains in equity markets helped support prices, with US stocks advancing as investors returned from a holiday weekend after a late rally by Chinese shares lifted global markets.
Jitters about Chinese growth have weighed on soyabean prices recently as China dominates global demand for the oilseed. China imported 7.78 million tonnes of soyabeans in August, up 29 percent year-on-year but down 18.1 percent from July's record shipments as cheap supplies from South American producers petered out. In the wheat market, large global supplies continued to limit gains. Australian production of wheat and canola will be higher than previously expected in 2015/16, the country's chief commodity forecaster said.
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