SINGAPORE/PARIS: Chicago corn futures bounced back on Tuesday, as the market recovered from the previous session's lowest level since mid-July after a report pegged the condition of US crops as below-market expectations.
Wheat fell after rising in the previous session on tightening global supplies.
"The USDA (US Department of Agriculture) published their weekly crop conditions report after the conclusion of Monday's trading. The market was looking for the steady corn crop conditions," Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said.
"The USDA instead reported another decline in the proportion of crops in the good or excellent categories. The decline in crop conditions suggests a positive start to trading today."
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.4% at $5.37-1/2 a bushel as of 1150 GMT, a day after hitting its lowest since July 13.
Soyabeans rose 0.8% to $13.03-1/2 a bushel while wheat lost 1.1% to $7.25-1/4 bushel.
The USDA rated 60% of the US corn crop in good-to-excellent condition in its weekly crop progress report on Monday, down 2 percentage points from the previous week, while analysts surveyed by Reuters on average had expected only a 1-point decline. The agency rated 56% of soyabeans as good-to-excellent, down from 57% the prior week and matching trade expectations for a 1-point drop.
The US spring wheat harvest was 77% complete, the government said, up from 58% the previous week and well ahead of the five-year average of 55%. Analysts surveyed by Reuters on average had estimated harvest progress at 74%.
The US winter wheat harvest is virtually over, last reported by the USDA as 95% complete by Aug. 8.
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