SINGAPORE: Chicago corn futures gained more ground on Tuesday, as the US crop condition declined due to adverse weather in parts of the Midwest. Wheat prices fell after Monday’s rally, while soybeans ticked higher.
“Corn market has risen as there are concerns over adverse weather in the US Midwest,” said one Singapore-based trader.
“But we don’t see a big upside in prices, unless the adverse weather continues.”
The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.1% to $4.21 a bushel, as of 0322 GMT, having climbed more than 3% in the last session.
Wheat fell 0.4% to $5.87-3/4 a bushel, while soybeans climbed 0.2% to $11.13 a bushel.
The condition of the US corn crop deteriorated in the latest week while national soybean ratings held steady after floods swamped portions of the northwestern Midwest, US government data released on Monday showed.
The US Department of Agriculture (USDA) rated 67% of the corn crop as good to excellent in its weekly crop progress report, down 2 percentage points from a week ago.
Analysts surveyed by Reuters on average had expected a 1-point decline.
China is likely to import record volumes of soybeans in July, drawn by lower prices and the prospect of Donald Trump returning as president and reigniting trade tensions between Beijing and the United States, which was once China’s top supplier of the oilseed.
Russian wheat export prices have declined for the fourth week in a row, tracking global markets amid good news about the new harvest.
The price of 12.5% protein Russian new crop wheat scheduled free-on-board (FOB) with delivery in late July was $226 per metric ton at the end of last week, $5 lower than a week earlier, according to the IKAR consultancy.
Commodity funds were net sellers of CBOT corn futures and net buyers of soyoil, wheat, soymeal and soybeans contracts on Monday, traders said.
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