Chicago | Reuters — U.S. corn futures recovered slightly on Wednesday from a steep selloff a day earlier as bargain buying and technical buying lifted prices from one-month lows, although gains were limited by favourable crop weather across the U.S. Midwest.
Soybeans were mostly lower, extending prior-session losses on good crop weather, while wheat fell to fresh six-week lows on strong U.S. winter crop prospects and stiff competition in export markets.
Brisk corn and soybean planting and rainfall in the U.S. Midwest have taken attention away from global supply tensions and soaring feed grain demand from China that had driven corn futures to an eight-year peak earlier this month.
“People are trying to call a short-term bottom. This is a function today of bottom-picking and technical buying after yesterday’s selloff,” said Terry Reilly, senior commodities analyst with Futures International.
Chicago Board of Trade July corn futures rose 4-1/4 cents to $6.24-1/2 a bushel (all figures US$). July soybeans were down 8-1/4 cents at $15.03-1/2 a bushel and CBOT July wheat was down eight cents at $6.48-1/2 a bushel.
Widespread rains have boosted recently seeded corn and soybeans and lessened some dryness concerns in portions of the western Corn Belt.
Forecasters expect further rains across the Midwest through Friday, with additional precipitation next week in the Ohio River Valley and the central Midwest. Dryness, however, remains a concern in portions of the Dakotas, forecasters said.
Grain traders are beginning to square positions ahead of the U.S. Memorial Day long weekend, with markets closed on Monday.
Steps by China to rein in commodity prices have also encouraged investors to trim positions in grain markets, traders said.
Traders were monitoring export flows from Argentina, a major supplier of soymeal and corn, amid continuing strike actions by port workers.
— Reporting for Reuters by Karl Plume in Chicago; additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra.