US corn futures steadied near a three-month low on Thursday as traders said the market was oversold following sharp declines stemming from a bearish US Agriculture Department harvest forecast issued on Monday. Soybean futures traded higher overnight but turned lower after a weak export sales report. Soy futures settled near session lows. Demand concerns, highlighted by poor exports of old-crop supplies, also limited corn buying. Wheat futures were mixed, with Chicago Board of Trade soft red winter wheat and MGEX spring wheat easing amid plentiful supplies while K.C. hard red winter wheat firmed on bargain buying after hitting contract lows.
Forecasts for good weather for crop development across much of the US Midwest during the next few weeks cast a bearish tone across the grains markets.
"The rebounds are perpetually shaky at this point, especially given what look to be excellent rains on tap, adequate USDA August production numbers, and a demand side in shambles for both corn and soyabeans," Matt Zeller, director of market information at INTL FCStone, said in a note to clients.
Chicago Board of Trade December corn futures ended 3/4 cent higher at $3.71 a bushel, its first close in positive territory since Aug. 8. CBOT November soyabeans were 7-1/4 cents lower at $8.70-3/4 a bushel. Traders shrugged off a big soya crush figure that came as many plants resumed operations after being forced to shut down due to flooding earlier in the summer.
The US soyabean crush in July topped most trade estimates and surged from a 21-month low in June to the sixth-highest for any month on record, according to National Oilseed Processors Association (NOPA) data released on Thursday. NOPA members, which handle about 95% of all soyabeans processed in the United States, crushed 168.093 million bushels of soyabeans in July, the highest-ever for the month. CBOT September soft red winter wheat was down 4-3/4 cents at $4.69 a bushel.
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