PARIS/SINGAPORE: Chicago corn and soybean futures were flat to slightly higher on Wednesday, underpinned by forecasts of rain that could hamper planting in some key areas of the US Midwest.
Wheat lost ground after an improved weekly rating for US winter wheat eased concerns about the drought-hit crop.
Price movements were restrained, with traders awaiting Thursday’s monthly world crop report from the US Department of Agriculture, which will include the USDA’s first full supply-and-demand outlook for the 2018/19 season.
The Chicago Board of Trade most-active corn contract was unchanged on the day at $4.03-1/4 a bushel by 1004 GMT, while soybeans ticked up 0.1 percent to $10.21 a bushel.
CBOT wheat eased 0.9 percent to $5.10 a bushel.
The US Department of Agriculture (USDA) said late on Monday that the US soybean crop was 15 percent seeded, ahead of the five-year average of 14 percent. The corn crop was 39-percent planted, behind the five-year average of 44 percent.
However, progress lagged in key states such as Minnesota and North Dakota, and weather forecasts show rains in those regions this week that may stall field work.
“Climatic conditions in the US are raising concerns about planting delays in soybean and corn,” consultancy Agritel said in a note.
“Despite this situation, soybean prices are evolving near to the lowest levels of the past month in a context where the Chinese import pace is slowing down as shown by the latest import numbers of April.”
Soybean futures hit a one-month low on Monday, partly due to slowing purchases by top importer China. The country’s April soybean imports fell to 6.9 million tonnes, much lower than expected, as arrivals were delayed because of tougher port inspections and a tax change, said traders and analysts.
For wheat, there was pressure from a slight improvement in the condition of the US winter crop, as well as forecasts calling for some rain in both the US Plains and in some dry parts of Russia and Ukraine. The USDA late on Monday rated 34 percent of the US winter wheat crop in good-to-excellent condition, up from 33 percent last week.
“There is some improvement in the US weather outlook but we are not yet sure if it will make a huge difference,” said a trader at an international trading company in Singapore.
“As far as importers are concerned, they are fine as Black Sea production looks good.”
Source: Brecorder
