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Corn up for 2nd day on expectations of lower U.S. yields (RT)

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  • Corn up from 1-week trough, market eyes lower U.S. yields
  • Wheat eases after Wednesday’s gains, soybeans dip

SINGAPORE, Sept 15 (Reuters) – Chicago corn futures rose for a second session on Thursday, recovering from one-week lows on expectations of further reductions in estimates for U.S. corn yields.

Wheat edged lower after gaining about half a percent in the last session, although the decline wasreined in by prospects of strong demand for U.S. shipments with lower supplies in Europe.

The Chicago Board of Trade most-active corn contract Cv1had climbed 0.2 percent to $3.32-1/4 a bushel by 0305 GMT, after hitting a one-week low at $3.26-1/2 a bushel on Wednesday.

Soybeans Sv1 dipped a quarter of a cent to $9.42-1/2 a bushel and wheat Wv1 gave up 0.1 percent to $4.02-1/2 a bushel.

“We see scope for a further downgrade in USDA’s corn yield estimates and see continued strength in U.S. corn exports amid a severe shortage of corn outside the U.S,” said Rajesh Singla, head of agriculture research at Societe Generale.

“La Nina weather can impact LatAm corn production.”

The U.S. Department of Agriculture trimmed its corn harvest outlook slightly from the previous month, but the crop is still expected to be the largest in history.

The agency on Monday reduced its U.S. corn production forecast to 383.4 million tonnes from 384.9 million tonnes estimated in August.

Lower wheat output in Europe is preventing further declines in wheat prices.

France, Europe’s largest grain producer, harvested 28.5 million tonnes of soft wheat this year, down from a record 40.9 million in 2015, FranceAgriMer said on Wednesday after adverse spring weather hampered crop development.

U.S. soybean processors likely cut back on their pace of crushing during August as some processors shut down for seasonal maintenance to ensure plants would be ready to handle the influx of beans from the upcoming harvest, analysts said.

The National Oilseed Processors Association (NOPA), the largest U.S. trade group for the industry, is expected to report that its members crushed 136.233 million bushels of soybeans in August, based on the average of estimates by six analysts.

The NOPA report is scheduled for release on Thursday at 1600 GMT.

Commodity funds were net buyers of CBOT corn and wheat futures contracts on Wednesday and net sellers of soybeans.