SINGAPORE, July 3: U.S. Corn rose for a second consecutive session on Wednesday as bargain hunting lifted prices after the market slid to its lowest level in two-and-half years earlier this week on expectations of record production.
New-crop soybeans rose after four sessions of declines, while wheat gained further from Monday’s lowest in more than a year, although forecasts of ample grain and oilseed supplies kept a lid on prices.
‘We have seen a bit of improved tone come through pricing after bearishness over the past few days, it is just positioning by traders,’ said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
‘We are still looking at a scenario of very large crops in 2013/14 and that is likely to replenish tight old crop situation.’
China, the world’s second largest consumer of corn, recently booked another three cargoes of U.S. Corn, bringing total purchases of new-crop U.S. Corn to 2.8 million tonnes so far in the year, an official think-tank said on Wednesday.
The shipment was bought at about $272 CIF, 400 yuan ($65.20)per tonne cheaper than domestic corn <0#ASCORN-CN>, said the China National Grain and Oils Information Center.
Chicago Board Of Trade December corn rose 0.4 percent to $5.04-1/2 a bushel by 0259 GMT, after dropping to its lowest since January 2011 on Tuesday, while November soybeans gained 0.3 percent to $12.46-1/4 a bushel.
The front-month wheat added 0.5 percent to $6.61-1/4 a bushel.
Trading was thin ahead of the U.S. Independence Day holiday on Thursday.
Based on current weather forecasts, a record large 13.391 billion bushel U.S. Corn crop may be produced this year and a record 3.198 billion bushel soybean crop is possible, an agricultural meteorologist said on Tuesday.
MDA Weather Services meteorologist Don Keeney told the Reuters Global Ag Forum that normal precipitation is expected across much of the Corn Belt and there were no signs of hot weather that might trim yields of either crop.
U.S. Corn and soybean crops improved in the last week, aided by warmer weather, although heavy storms damaged crops in parts of the northern Midwest, the U.S. Department of Agriculture and state reports said.
The USDA rated 67 percent of the U.S. Corn and soybean crops in good to excellent condition, both up from 65 percent a week earlier.
Prices at 0259 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 661.25 3.00 +0.46% 866.45 31
CBOT corn 504.50 1.75 +0.35% 758.73 57
CBOT soy 1246.25 3.75 +0.30% 1572.08 79
CBOT rice $15.25 -$0.05 -0.33% $15.48 33
WTI crude $101.92 $2.32 +2.33% $89.38 78
Currencies
Euro/dlr $1.297 $0.068
USD/AUD 0.913 -0.143
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Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
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