Corn, soybeans consolidate after lows as USDA report looms

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PARIS/SINGAPORE — Chicago corn and soybean futures inched

up on Friday, consolidating near multi-month lows before a much-anticipated crop

report in which the U.S. government is expected to raise harvest forecasts.

Wheat edged lower to touch a new seven-week low, pressured by weakness in

corn and soy as well as easing concerns about global export supplies.

The U.S. Department of Agriculture’s monthly supply and demand report, due

at 1600 GMT, has attracted greater interest as it is set to incorporate updated

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an acreage survey.

Favorable late-summer weather has added to expectations that the USDA will

increase its corn yield projection after surprising the market with a downward

revision last month.

“For the U.S market, corn is the grain benchmark so if the corn crop is good

the rest follows on,” a European trader said.

The most-active corn contract on the Chicago Board of Trade (CBOT) was

up 0.3% at $5.11-1/4 a bushel as of 1133 GMT, recovering from Thursday’s 7-1/2

month low of $5.04-1/4.

CBOT soybeans ticked up 0.3% to $12.73-3/4, near Thursday’s 2-1/2

month low. Wheat inched down a quarter of a cent to $6.92 after earlier

touching its weakest since late July.

The U.S. market has also been curbed by disruption to U.S. Gulf export

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terminals following Hurricane Ida.

“The resulting slowing of shipments from the (U.S. Gulf) region, together

with a potential surge in global COVID levels and talk of slowing Chinese import

demand, may keep markets on the defensive in the short term,” British merchant

ADM Agriculture said in a note.

China has lowered its 2021/2022 outlook for consumption of corn use in

animal feed as hog prices stay low, the agriculture ministry said on

Friday.

The grain market will get an update on overseas demand from weekly U.S.

export sales data due at 1230 GMT.

The wheat market has faced supply pressure after an increase in Canadian

stocks and improved harvest prospects in Australia and Argentina.

Prices at 1133 GMT

Last Change Pct End Ytd Pct

Move 2020 Move

CBOT wheat 692.00 -0.25 -0.04 640.50 8.04

CBOT corn 511.25 1.25 0.25 484.00 5.63

CBOT soy 1273.75 3.25 0.26 1311.00 -2.84

Paris wheat Dec 238.25 -1.25 -0.52 192.50 23.77

Paris maize Nov 213.25 -0.25 -0.12 219.00 -2.63

Paris rape Nov 573.00 3.00 0.53 418.25 37.00

WTI crude oil 69.37 1.23 1.81 48.52 42.97

Euro/dlr 1.18 0.00 0.08 1.2100 -2.20

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Shounak Dasgupta and Louise Heavens)