SINGAPORE: Chicago corn futures bounced back on Wednesday, recouping some of previous session’s deep losses, as a decline in the U.S. crop condition underpinned prices. Soybeans and wheat also firmed.
“The market has pretty much convinced itself that the USDA (U.S. Department of Agriculture) will publish larger U.S. corn crop estimates,” Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said.
“The USDA’s crop conditions survey though showed a slight decline in U.S. crop conditions last week. The survey was published after the close of trading so will be a plus in early trading today.”
The USDA rated 59% of the U.S. corn crop in good-to-excellent condition in its weekly crop progress report on Tuesday, down 1 percentage point, while analysts surveyed by Reuters on average had expected no change.
For soybeans, the agency rated 57% of the crop as “good to excellent”, up 1 percentage point from prior week, in line with trade expectations.
The most-active corn contract on the Chicago Board Of Trade (CBOT) was up 0.4% at $5.12-3/4 a bushel, as of 0250 GMT, having closed 2.5% lower in the previous session.
Soybeans were up 0.8% at $12.87-1/4 a bushel and wheat gained 0.4% at $7.22-1/4 a bushel.
Market eyes the USDA’s monthly supply-and-demand report due at the end of the week.
Analysts anticipate the USDA’s Sept. 10 outlook to increase estimates of U.S. corn and soybean production as the Midwest harvest begins.
Last week, U.S. exports of corn and soybeans dropped to multi-year lows after export terminals in the U.S. South were battered by Hurricane Ida. Export facilities remain closed due to damage and power outages.
U.S. exporters shipped just 68,059 tonnes of soybeans the week ended Sept. 2, down 82% from a week earlier and 96% less than the year-ago period. Corn exports of 275,799 tonnes were 53% lower than the week prior and 69% lower than the year-ago week, according to the USDA.
Commodity funds were net sellers of CBOT corn, soybean, wheat, soy oil and soy meal futures contracts on Tuesday, traders said.