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Corn jumps to 2-month high as heat, dryness hit U.S. crops

By Michael Hogan

HAMBURG, Aug 29 (Reuters) - Chicago corn futures rose on Monday to their highest level in about two months after a U.S. crop inspection tour forecast smaller harvests following hot and dry weather.

Soybeans fell after the crop tour forecast a large U.S. harvest. Wheat was pressured by cheap export prices offered from the Black Sea region.

Chicago Board of Trade's most-active corn rose 1% to $6.71 a bushel at 1106 GMT, after earlier reaching $6.74-3/4, its highest since June 24.

Wheat fell 0.9% to $7.98 a bushel, soybeans fell 1.3% to $14.41-3/4 a bushel.

U.S. corn production will fall below USDA forecasts as hot and dry weather robbed the crop of its harvest potential, advisory service Pro Farmer said on Friday after a crop inspection tour.

Pro Farmer estimates a U.S. corn harvest this year of 13.759 billion bushels, the smallest since 2019 and below USDA forecasts of 14.359 billion bushels.

"Corn is firm today with the market focusing on the estimate of a small. U.S. harvest from the Pro Farmer crop tour," said Matt Ammermann, StoneX commodity risk manager. "Pro Farmer does generally tend to estimate below the USDA, now the focus will turn towards the next USDA forecast of U.S. crops in September."

"Rises in corn are limited by cheap sales offers of Ukrainian corn as shipments through the safe shipping passage continue to develop. Cheap sales offers from both Ukraine and Russia are also depressing wheat futures today."

Russia is gathering a good harvest but has been struggling to make new sales.

Soybeans fell after Pro Farmer predicted a U.S. soybean crop of 4.535 billion bushels, slightly above the USDA forecast of 4.531 billion bushels.

Soybeans also suffered from weak outside markets after the comments from the U.S. Federal Reserve on Friday indicating possible rate rises, Ammermann said. (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Ros Russell)

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