Corn edges higher, rebounds from near 2-month low

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CANBERRA — U.S. corn futures edged higher on Wednesday, as prices rebounded from a near two-month low touched in the previous session, though sluggish demand for U.S. supplies capped gains.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 0.5% at $5.13-1/2 a bushel, as of 0127 GMT, having closed 2.5% lower in the previous session when prices hit a July 9 low of $5.10-1/4 a bushel.

* The most active soybean futures were up 0.5% at $12.83-1/2 a bushel, having closed down 1.2% on Wednesday.

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* The most active wheat futures were up 0.5% at $7.23 a bushel, having closed down 0.9% on Tuesday.

* Market eyes U.S. Agriculture Department’s monthly supply and demand report due at the end of the week.

* Analysts anticipate the USDA’s Sept. 10 outlook to increase estimates of U.S. corn and soybean production as the Midwest harvest begins.

* U.S. exports of corn and soybeans dropped to multi-year lows last week after export terminals in the U.S. South were battered by Hurricane Ida. Export facilities remain closed due to damage and power outages.

* U.S. exporters shipped just 68,059 tonnes of soybeans the week ended Sept. 2, down 82% from a week earlier and 96% less than the year-ago period. Corn exports of 275,799 tonnes were 53% lower than the week prior and 69% lower than the year-ago week, according to the USDA.

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MARKET NEWS

* The dollar hovered near a one-week peak on Wednesday against major peers, buoyed by higher Treasury yields and a weaker euro amid caution before a European Central Bank policy decision.

* Oil prices fell on Tuesday, pressured by a strong U.S. dollar and concerns about weak demand in the United States and Asia, although ongoing production outages on the U.S. Gulf Coast capped losses.

* U.S. shares were mixed and global equities retreated from record highs on Tuesday as investors balanced mounting worries over the slowing pace of economic recovery and hopes the Federal Reserve will delay tapering its bond purchases.

(Reporting by Colin Packham)