CANBERRA: Chicago corn futures held hear their highest level since June on Tuesday as the market awaited estimates from the US Department of Agriculture (USDA) that are expected to show a decline in US stockpiles.
Corn takes a breather after rallying to 5-month high
Soybean and wheat futures were little changed, as the market assessed forecasts for huge South American soy production and mixed signals on the size of Russia’s wheat crop.
Fundamentals
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The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.1% at $4.41-1/2 a bushel by 0215 GMT after climbing to $4.42 on Monday, the highest since June 26.
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CBOT soybeans rose 0.1% to $9.91-1/4 a bushel and wheat fell 0.1% to $5.58 a bushel. * All three contracts hit four-year lows earlier this year due to plentiful supply and have struggled to recover ground.
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Solid exports from the United States are supporting corn prices, with the USDA reporting export inspections of US corn in the latest week at 1,049,690 metric tons, the high end of trade expectations.
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Importers in Spain are buying US corn at a pace not seen in at least six years due to high South American prices and crop quality concerns in Ukraine, traders and analysts said.
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In soybeans, analysts expect the monthly USDA supply and demand report, due at 1700 GMT, to raise its estimate for Brazilian production.
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Widespread rains in Brazil are expected to continue improving moisture in the coming week, according to meteorologists at Maxar.
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Brazilian farmers had planted 95% of the total expected area for the 2024/25 season by last Thursday, consultants AgRural said, compared with 91% at the same point in 2023/24.
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In wheat, the condition of crops in top exporter Russia may not be as bad as leaked data suggested last week, as the figures did not adjust for the fact that many plants sprout later due to climate change, Russian agriculture analysts said.
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Data from the state weather forecasting agency had indicated that over 37% of Russian winter crops were in poor condition or had not sprouted due to low moisture levels - the worst crop condition rating on record.
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Commodity funds were net buyers of CBOT corn and wheat futures and net sellers of soybeans on Monday, traders said.
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