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Corn rises after deep losses, wheat struggles with ample supplies

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  • Corn up 0.2 pct after losing 5.2 pct over two days
  • Forecasts of favourable weather keep lid on corn futures
  • Wheat unmoved after decline, abundant supply weighs

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By Naveen Thukral

SINGAPORE, July 21 (Reuters) – Chicago corn edged higher on Thursday as the market took a breather after dropping to a two-week low in the previous session on forecasts of favourable U.S. crop weather.

Wheat was little changed following a near four percent decline in the past two days as it remained under pressure from large global stocks and bumper output from the U.S. winter crop.

Chicago Board Of Trade most-active corn contract Cv1 rose 0.2 percent to $3.45 a bushel by 0247 GMT, having lost 5.2 percent the last two days. On Wednesday, corn fell to a low of $3.41-1/2 a bushel, weakest since July 5.

Wheat Wv1 was unchanged at $4.13 a bushel and soybeans Sv1 gained 0.3 percent to $10.11-3/4 a bushel.

“We are in a bearish market, the USDA reports have been showing pretty high crop ratings for soybeans and corn,” said Kaname Gokon at brokerage Okato Shoji Co in Tokyo.

“Looks like it will be an early harvest this year which will keep pressure on the market.”

There was more rain added to the outlook for key growing areas of the U.S. Midwest, which will help protect the corn crop from the scorching temperatures expected over the next few days.

Additionally, temperatures are forecast to quickly moderate from their highs, easing stress on the crop as it pollinates.

For soybeans, with a critical period of development for much of the U.S. crop approaching, the latest U.S. weather reports call for adequate rain and moderate temperatures during August.

That outlook eased concerns about the La Nina weather phenomenon laying waste to yields.

Potentially giving a boost to corn prices, Argentine grain truckers started an open-ended strike on Monday over transport prices. Corn exports from Argentina, the world’s No. 3 supplier, could slow if farmers and the striking truck drivers fail to reach a deal, an exporters’ organisation said.

Commodity funds were net sellers of CBOT soybean, corn and wheat futures contracts on Wednesday as improving weather forecasts sparked further declines in prices.