- Corn rebounds but USDA forecast caps gains
- Wheat, soybeans also rise
- USDA to issue 2016/17 supply-demand forecast
By Colin Packham
SYDNEY, May 10 (Reuters) – U.S. corn edged up on Tuesday from a near one-month low hit in the previous session, though gains were checked as traders readied for a U.S. Department of Agriculture report due later in the day that is expected to show stocks at a 29-year high.
Wheat also rose, rebounding from losses of nearly 1.6 percent, while soybeans gained as well.
The most active corn futures on the Chicago Board of Trade Cv1 rose 0.34 percent to $3.70-1/4 a bushel after dropping 2.2 percent on Monday, when prices hit the lowest since April 13 at $3.68-1/4 a bushel.
Analysts said the market was drawing support from position squaring ahead of a widely watched USDA report coming out later in the session.
“The market is expecting a bearish USDA report and that triggered the losses on Monday, and the market is seeing some rebounding today,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
“The only uncertainty is the South American corn supply, and that is the one to watch.”
The USDA report will include the government’s first official supply-and-demand tables for the 2016/17 marketing year.
Analysts surveyed by Reuters expect the agency to project that U.S. corn stocks will balloon above 2.2 billion bushels by the end of 2016/17, which would be the most since 1987/88.
Traders said a USDA weekly update on plantings is also providing a ceiling to gains. The USDA said corn plantings was 64 percent complete, ahead of market expectations of 62 percent complete.
The most active soybean futures Sv1 rose 0.37 percent to $10.30-1/4 a bushel, having closed down 0.8 percent on Monday.
Soybean planting progress was pegged at 23 percent complete, slightly ahead of expectations.
The most active wheat futures Wv1 rose 0.38 percent to $4.58-1/4 a bushel, having closed down 1.56 percent on Monday.
The USDA has projected world wheat stocks to reach an all-time high by the end of 2015/16, and analysts surveyed by Reuters expect stocks to swell further by the end of 2016/17
Spring wheat plantings was 77 complete, the USDA said, ahead of market expectations of 74 percent complete.
The USDA pegged the condition of the winter wheat crop at 62 percent good to excellent, matching market forecasts.
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