Chicago | Reuters — Chicago corn, soybean and wheat futures ticked up on Monday as traders awaited U.S. government harvest estimates later this week, with shrinking trade expectations on what are still expected to be large crops, according to analysts.
A weaker dollar also underpinned grains and soybeans.
Chicago Board of Trade most-active December corn was up 3-3/4 cents at $4.21-3/4 per bushel.
Dec wheat rose 4-1/2 cents to $5.23-3/4 a bushel, Nov soybeans rose 6-3/4 cents to $10.33-3/4 a bushel.
Dealers were positioning ahead of world supply and demand reports from the U.S. Department of Agriculture on Friday, including U.S. corn and soybean harvests.
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Corn yields are still expected to be huge, but Jim McCormick, co-founder of AgMarket.net, said they may fall below some previous estimates.
“Most in the industry are looking for the crop to get smaller,” said McCormick, with a dry August having been less favorable for crop development.
Analysts in a Reuters poll on average estimated corn and soybean condition ratings would be down two points from the previous week in the U.S. Department of Agriculture’s weekly report due to be released on Monday afternoon.
However, a lack of Chinese buying of U.S. soybeans remains a bearish factor, said McCormick, with no substantive news from U.S./China trade talks.
Likewise, he said, the USDA is likely to revise feed usage lower in Friday’s report, with the ban on cattle imports from Mexico because of an epidemic of the screwworm parasite making a dent in corn demand.
Last week, S&P Global forecast U.S. corn and soybean production above the USDA’s August outlook. Other private forecasts last week projected yields and production below the USDA.
Wheat was also slightly firmer as the dollar softened, making U.S. exports cheaper and more competitive on the global export market.
