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GRAINS-Corn ticks higher after two-day tumble; soybeans firm on U.S. weather

Reuters
Reuters
 2021-08-05

* Chicago corn futures rise following two days of decline

* Soybeans little changed, adverse U.S. weather supports prices (Recasts with move in wheat, corn; adds quote in paragraphs 3-4)

SINGAPORE, Aug 5 (Reuters) - Chicago corn futures bounced back on Thursday after two straight sessions of losses, although worries over global demand due to the rapidly spreading Delta variant of the coronavirus limited gains.

Soybeans were little changed, holding on to the previous session’s gains, as concerns about unfavourable weather across a key U.S. producing region supported prices.

“We have a bit of support for corn today but overall there is demand destruction due to the coronavirus,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

“For the U.S. corn crop, there is still a wide range of opinions on yields.”

The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.3% to $5.48-1/2 a bushel as of 0432 GMT, having closed down 0.9% in the previous session.

Soybeans were flat at $13.25-3/4 a bushel, and wheat was little changed at $7.17 a bushel.

Investors are worried about the weather outlook across the U.S. Midwest, which could threaten corn and soybean crops.

The market is waiting for the U.S. Department of Agriculture monthly supply and demand report to be published next week for its production outlook and global demand forecast.

An estimate by commodity brokerage StoneX released Monday afternoon pegged the U.S. soybean harvest at 4.332 billion bushels with an average yield of 50.0 bushels per acre, slightly below the most-recent USDA estimates.

Russian agriculture consultancy Sovecon said on Monday it had cut its forecast for Russia’s 2021 wheat crop by 5.9 million tonnes to 76.4 million tonnes.

French soft wheat shipments outside the European Union fell to their lowest level in over a decade for July, Refinitiv data showed, as a rain-hampered harvest contributed to a slow start to the 2021/22 export season.

Commodity funds were net sellers of CBOT corn, wheat and soyoil futures contracts on Wednesday, and net buyers of CBOT soybeans and soymeal, traders said. (Reporting by Naveen Thukral; Editing by Amy Caren Daniel)

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