Chicago | Reuters –– U.S. corn edged slightly higher while soybeans reversed from earlier gains to turn lower on Thursday as drier weather outlooks for next week were seen as benefiting both crops after record rains in the Midwest in recent months limited yield potential.
Corn was in the early phases of its pollination period and hot temperatures could stress plants as they go through the crucial phase of development. The U.S. soybean crop has more time to recover from waterlogged conditions, with most plants typically producing beans during August.
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U.S. grains: Corn rebounds from contract lows on short covering, bargain buying
Bargain buying and short covering lifted U.S. corn futures on Monday after the market slid to contract lows on expectations for strong U.S. output, traders said.
“We’re looking at the forecasts and things could get better from here, and that’s what’s putting pressure on (soybeans and corn),” said Ted Seifried, analyst at Chicago brokerage the Zaner Group.
“Beans could see the most improvement from the better weather,” Seifried added. “The damage has probably been done in corn. Beans have a month or so to come around.”
Chicago Board of Trade September corn futures were up 1/2 cent at $4.30 per bushel (all figures US$). The contract was below its earlier session high of $4.38-3/4, but still holding above its 10-day moving average and rose the second day in a row.
CBOT August soybeans were six cents lower at $10.19 per bushel, off their earlier peak of $10.38-1/4.
Wheat futures were mostly lower, pressured by gains in the dollar that expanded the competitive disadvantage of U.S. supplies in global markets.
The U.S. Department of Agriculture earlier said wheat export sales last week totaled 291,500 tonnes, below the low end of analyst expectations.
Reuters also reported that buyers in Mexico purchased several cargoes of French wheat, replacing U.S. supplies in what is typically one of the United States’ top customers.
September wheat settled 4-1/2 cents lower at $5.62-1/4 per bushel, hovering near Wednesday’s two-week low.
— Michael Hirtzer reports on grain markets for Reuters from Chicago. Additional reporting for Reuters by Colin Packham in Sydney and Sybille de La Hamaide in Paris.
