Corn, wheat, soy steady as US crop prospects assessed

PARIS/CANBERRA: Chicago corn, wheat and soybean futures edged higher on Friday as the market assessed contrasting rain forecasts for US growing belts and looked ahead to government acreage estimates next week.

Grain prices have been pressured this week by weather charts projecting heavy rain in a swathe of the US Midwest, but more limited moisture expected in northerly zones has sustained concern about drought damage.

New-crop December corn futures on the Chicago Board of Trade were up 0.2% at $5.37-1/4 a bushel by 1121 GMT.

"The long-awaited rains in the Iowa region are particularly welcome," consultancy Agritel said in a note, referring to the largest US corn producing state.

"However, the crucial period remains ahead at the corn flowering stage by mid-July."

Market participants are increasingly turning their attention towards the US Department of Agriculture's June 30 acreage report. Analysts expected the USDA to increase corn and soy area estimates compared with its March projections.

US harvest prospects are being watched particularly closely due to tightening global stocks and strong Chinese demand.

The International Grains Council on Thursday forecast that the world's stocks-to-use ratio for grains would fall to an eight-year low in 2021/22, despite expected record production of corn and wheat.

CBOT November soybean futures were up 0.5% at $12.97-3/4 a bushel, facing resistance at the psychological $13 threshold.

The USDA said on Thursday private exporters reported a sale of 132,000 tonnes of soybeans to China and 260,000 tonnes of soybeans to unknown destinations, adding to other soybean export sales reported this week.

Soybean futures also drew support from a recovery in vegetable oil prices this week.

CBOT September wheat was up 0.6% at $6.56 a bushel, supported by concerns over drought in northern US spring wheat belts.

MGEX September spring wheat was up 1.7%.

Wheat markets have been weighing drought damage to spring wheat in North America and the Black Sea region against favourable prospects for winter wheat harvesting that is getting under way in the northern hemisphere.