(Reuters) – Chicago corn on Wednesday moved further away from a three-year low hit earlier this week, supported by bargain buying from end-users and concerns over wet weather slowing the U.S. harvest.
Wheat ticked lower after its biggest decline in more than three weeks on Tuesday, pressured by expectations of India cutting export prices and improved planting weather in the Black Sea region. Chicago Board of Trade December corn had risen 0.2 percent to $4.44-1/4 a bushel by 0305 GMT, while front-month soybeans added 0.2 percent to $12.70 a bushel.
Spot-month wheat fell 0.1 percent to $6.85 a bushel. The market slid 1 percent on Tuesday in its biggest daily loss since September 20.
“Wet weather which slowed down the U.S. harvest is supporting corn and soybeans, but the gains are unlikely to be sustained as there are forecasts of dryness returning to the region towards the end of this week,” said Vanessa Tan, investment analyst at Phillip Futures in Singapore.
Scattered rains across the Midwest stalled the corn and soybean harvest in some areas. But an extended period of dry weather beginning midweek and continuing into at least next week should allow farmers to resume harvesting a bumper soybean crop and a likely record-large corn crop.
The lowest corn prices in three years reignited demand from importers such as China which has been in the market to book cargoes, traders said.
The wheat market is being weighed down by talk of India reducing export prices to boost sales and improved planting weather in Russia and Ukraine, analysts said.
India may soon cut the floor price for exports of wheat from government warehouses by 13 percent, government sources said on Tuesday, which could boost shipments.
The move could come after state-run trading firms in the world’s second-biggest wheat producer after China earlier this month received bids lower than the minimum rate for overseas sales, the sources said.
In the soybean market, there was additional support as the National Oilseed Processors Association (NOPA) reported September crushings above analyst forecasts and as export inspections topped forecasts.
NOPA said the U.S. soybean crush fell to a four-year low of 108.68 million bushels in September, down nearly 2 million bushels from August but more than 2 million bushels above trade forecasts.
Commodity funds bought an estimated net 8,000 corn contracts on the day and sold a net 3,000 contracts each of soybeans and wheat, trade sources said.
