SINGAPORE: Chicago corn futures were largely unchanged on Tuesday, with the market trading near previous session’s four-year low on expectations of record US production and selling of old-crop supplies by farmers.
Soybeans and wheat eased amid plentiful global supplies.
“We don’t see much downside in corn prices from the current level, as record US crop has been factored into the market,” a Singapore-based trader said.
“Supplies from Northern Hemisphere harvest, especially from the Black Sea region, are still putting a lid on wheat prices.”
The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.1% at 3.86-3/4 a bushel, as of 0259 GMT, after touching its lowest level since 2020 at $3.85 a bushel on Monday.
Wheat lost 0.2% to $5.23-3/4 a bushel and soybeans fell 0.2% to $9.79-1/4 a bushel. A flurry of US farmer selling has continued this week, adding downward momentum to corn futures.
A closely followed crop tour run by advisory service ProFarmer projected record crop yields in major producer states Illinois and Iowa, reinforcing a global oversupply picture.
ProFarmer also reported that the US soybean harvest will be even bigger than the government’s record forecast.
However, a heat wave and lack of rainfall in swathes of the US Midwest may damage the soybean crop during its key development stage and has left industry players uncertain about whether the projected record yields will be realized, analysts said.
Soybeans, corn drop on forecast of bumper US crops
In Europe, crop monitoring service MARS on Monday cut most of its average grain yield forecasts for the region this year, with another sharp reduction for maize as hot weather continues to take a toll on crops in southeast Europe.
Brazilian farmers have started sowing their 2024/25 first corn crop, agribusiness consultancy AgRural said on Monday, estimating work in the fields to have reached 4.2% of the projected area in the key center-south region by late last week.
Wheat futures are facing headwinds from cheap Black Sea supplies.
Recent rains in Argentina’s agricultural heartland were not enough to lift the wheat crop, which has withered on lack of precipitation, the Rosario Grains Exchange said on Monday.
Commodity funds were net sellers of CBOT corn, wheat and soymeal futures contracts, and were net buyers of soyoil and soybean futures contracts on Monday, traders said.