Chicago | Reuters — U.S. corn futures rose on Tuesday on concerns about tightening grain supplies while soybean futures advanced on strong global vegetable oil markets, analysts said.

Wheat futures turned lower on profit-taking after rallying on supply concerns a day earlier.

Chicago Board of Trade September corn futures settled up six cents at $5.51-1/4 per bushel, with new-crop December corn up 7-3/4 cents at $5.40-3/4 (all figures US$).

CBOT August soybeans ended up 10-1/2 cents at $14.14-3/4 a bushel, while CBOT September wheat finished down seven cents at $6.33-3/4 a bushel.

Corn futures firmed on optimism about export demand for U.S. supplies, given declines in the size of Brazil’s corn harvest. The U.S. Department of Agriculture on Monday lowered its estimate of Brazil’s 2020-21 corn production to 93 million tonnes, from 98.5 million a month earlier.

“The bottom line with the Brazil crop sinking is that more business has a chance to come to the U.S. or Ukraine, or a split. The trade believes the demand (in USDA’s forecast) is too low,” said Don Roose, president of Iowa-based U.S. Commodities.

Brokers were also considering whether USDA might eventually lower its forecast of the U.S. 2021 corn yield from its current projection of 179.5 bushels per acre, signalling tighter supplies of new-crop corn.

Soybeans rose as CBOT soyoil futures followed strength in ICE canola and Malaysian palm oil futures tied to concerns about edible oil supplies.

“The canola (market) has been on fire. World vegetable oils are getting a little tighter,” Roose said.

CBOT wheat was choppy, turning lower after early advances as traders digested data from Monday’s monthly USDA supply/demand report. The USDA cut its estimate of U.S. wheat production due to drought in the northern Plains spring wheat belt.

Minneapolis Grain Exchange (MGEX) September spring wheat settled up 4-1/2 cents at $8.61-3/4 a bushel after setting a contract high at $8.70-3/4, but CBOT and K.C. wheat futures turned lower at mid-session.

“Wheat had a pretty big day yesterday, so I think it’s taking a little bit of break,” Roose said.

After the CBOT close, Egypt’s General Authority for Supply Commodities (GASC) set a tender to buy an unspecified amount of wheat from global suppliers for shipment from Sept. 11 to 20.

— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Sybille de La Hamaide in Paris and Naveen Thukral in Singapore.