US corn futures rose on Monday ahead of a US Department of Agriculture (USDA) report due on Wednesday expected to show downward revisions in US stock piles and lower global production estimates. "The main themes this week are obviously going to centre around the USDA report and also index fund rebalancing," said Luke Mathews, an agricultural strategist at Commonwealth Bank of Australia.
Chicago Board of Trade (CBOT) corn for March delivery, which last week rose to 29-month highs, was up 0.8 percent at $6.00 per bushel by 1219 GMT. "The other theme that we've got at the moment is the speculative influence is strong as speculators are carrying large long positions so there's some susceptibility to selling ahead of the USDA report," said Mathews.
He said corn had also gained on continuing dryness in Argentina, a leading exporter of the grain, but light showers over the weekend were insufficient to boost crops. He added there had been a bounce across the grains market, supported by a jump in the crude oil price after a leak shut an Alaskan pipeline that carries 12 percent of US crude output.
A weaker dollar during Monday's session also supported prices. Wheat for March delivery rose 0.2 percent to $7.76 per bushel while January soyabeans rose 0.4 percent to $13.64-1/4 per bushel ahead of the weekly US grain and oilseeds export inspections report due later on Monday.
European benchmark wheat prices in Paris were little changed. Paris January wheat was flat at 256 euros a tonne. Floods damaging to crops in Australia, a leading exporter of wheat, also lent support to the grains market. "The forecast for the next week and a half is reasonably worrying as widespread falls are forecast through Victoria, southern New South Wales and South Australia," said Mathews, referring to the country's states.
"That's going to be a significant concern to a grain harvest that has already been extraordinarily frustrating because of persistent rainfall," he said. He said the forecast for widespread rain in Australia, where the harvest is in its final stages, was potentially one of the factors contributing to the firmer tone in prices.
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