U.S. grains: Corn bounces off six-week low prior to crop forecasts

Winnipeg | Reuters — Corn futures edged higher on Tuesday, recovering from a six-week low as bargain-buying and an outlook for drier U.S. weather offset pressure from comfortable global supply.

Chicago wheat and nearby soybeans failed to hold earlier gains.

Grains were supported by dry conditions in parts of the eastern corn belt, and as traders adjusted positions ahead of private forecasts this week and the U.S. Department of Agriculture’s monthly supply and demand report on Aug. 12, said Don Roose, president of U.S. Commodities.

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The USDA report is causing “heightened anxiety” amid oversold conditions, Roose said.

Chicago Board Of Trade September corn added 2-1/4 cents, or 0.7 per cent, to $3.68-3/4 a bushel (all figures US$).

September wheat finished down 5-1/2 cents or 1.2 per cent at $4.93-1/2 a bushel, stopping short of the six-week low it registered during the previous session. Technical selling and stiff global export competition for U.S. wheat pressured prices.

Ukraine exported 2.86 million tonnes of grains in July, topping officially reported figures, the UkrAgroConsult consultancy said on Tuesday.

August soybeans eased 1-1/2 cents at $9.76, but deferred months gained on bargain-buying and worries about dry Midwest areas, traders said.

USDA on Monday pegged 63 per cent of the soybean crop good to excellent, up from 62 per cent a week ago but below 71 per cent last year. The corn rating steadied at 70 per cent good to excellent this week.

“Crop conditions have improved slightly which is one thing and generally the growing season is shaping up well,” said Ole Houe, analyst at Sydney-based brokerage IKON Commodities.

Rod Nickel is a Reuters correspondent covering the agriculture and mining sectors from Winnipeg. Additional reporting for Reuters by Julie Ingwersen in Chicago, Naveen Thukral in Singapore and Gus Trompiz in Paris.

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