CANBERRA: Chicago corn and soybean futures edged up on Wednesday and were hovering above multi-year lows as concerns over the condition of US crops were offset by ample supply.
CBOT corn, soy futures rise on short-covering
Wheat futures also rose slightly but were under pressure from a rapidly advancing US harvest.
Fundamentals
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.21-1/2 a bushel by 0052 GMT after falling to $3.99-1/2 on Friday, its lowest since 2020.
CBOT soybeans rose 0.1% to $11.14-1/4 a bushel having slumped to $10.97, also its lowest since 2020, on Monday.
Wheat was up 0.3% at $5.82-1/2 a bushel after falling to a two-month low of $5.57 in June.
US government data on Monday showed the condition of the US corn crop had deteriorated and soybean ratings had held steady after floods swamped portions of the northwestern Midwest.
Some meteorological models predict the western Corn Belt could face dry weather and high heat in late July or early August, which could impact soybean pod setting.
Half of US Crop Watch producers have ongoing crop concerns, particularly with corn.
The US Department of Agriculture (USDA) also reported on Friday that US farmers planted more corn than it forecast in March, hitting corn prices.
US farmers are holding onto corn and soybeans waiting for better prices, which could hamper any price recovery.
Brazilian second-corn farmers are expected to reap 100.5 million metric tons in the 2023/24 cycle, 10% less than last season but more than initially thought, consultants Agroconsult said.
China’s COFCO International projects a potential increase of Brazilian soybean and corn harvests in the 2024/25 cycle, it said.
China is likely to import record volumes of soybeans in July, drawn by lower prices and the prospect of Donald Trump returning as president.
In wheat, harvesting of the US winter crop continued to progress ahead of the average pace and condition ratings improved for spring wheat in the northern Plains, the USDA said.
Russian wheat export prices declined for a fourth week in a row last week but uncertainty remains about the final size of the harvest in the world’s largest wheat exporter.
Commodity funds were net buyers of CBOT corn, soybeans, soymeal and soyoil futures and net sellers of wheat on Tuesday, traders said.