Thursday, 16 July 2015 17:53
SYDNEY/PARIS: US corn rose more than 1 percent on Thursday to extend gains into a second straight session, though forecasts for more favourable weather provided some headwind.
Soybeans rose 0.5 percent, while wheat was unchanged near a three-week low.
Chicago Board of Trade September corn rose 1.0 percent to $ 4.34 a bushel, having closed up 0.2 percent on Wednesday.
Analysts said a slightly wetter weather outlook was underpinning some gains.
“Feed demand seems to be impatient,” said Tobin Gorey, director, agricultural strategy, Commonwealth Bank of Australia.
“Weather forecasters continue to expect a better turn in the weather for much of the US Corn Belt but they have now added a little more rain to next week’s forecasts.”
Corn hit a one-year high of $ 4.43-1/4 a bushel earlier in the week following the US Department of Agriculture’s bigger than expected cut to its ending stocks forecast, while concerns over potential yield losses continue to persist.
The USDA left its corn yield forecast unchanged last week, while it confirmed the condition of crop remained unchanged earlier in the week – though traders continue to expect the US government forecast will eventually be trimmed.
Meteorologists predict warmer and drier conditions in the eastern half of the Midwestern crop belt, where record rainfall left pools of water, reducing corn and soybean yield potential and damaging mature fields of soft red winter wheat.
“Weather forecasts point to an improvement with the arrival of rains in the north of the USA and on the Canadian plains in the coming days seen as a relief for spring wheat and soy crops,” French consultancy Agritel said in a note.
August soybean futures rose 0.59 percent to $ 10.31 a bushel, recouping much of the 0.8 percent loss the previous session.
September wheat was unchanged at $ 5.66-3/4 a bushel, having closed down 0.8 percent on Wednesday when prices hit a low of $ 5.58-1/2 a bushel – the lowest since June 26.
Traders said harvest progress in the United States and Europe was adding supply pressure at a time of large global stocks.
The US winter wheat harvest was 65 percent complete as of Sunday, up 10 points over the week, according to the US Department of Agriculture.
Paris wheat futures on Euronext were firmer, mainly helped by a weaker euro against the dollar and following consultancy Strategie Grains’ reduction in its estimate for the European Union’s 2015 wheat and corn crops.
