Corn prices rise from 6-week low, declining U.S. crop condition supports
SINGAPORE, Aug 24 (Reuters) - Chicago corn futures bounced back on Tuesday, as the market recovered from the previous session's lowest level since mid-July after a report pegged the condition of U.S. crops as below-market expectations.
Wheat gained more ground on tightening global supplies.
"The USDA (U.S. Department of Agriculture) published their weekly crop conditions report after the conclusion of Monday's trading. The market was looking for the steady corn crop conditions," Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia said.
"The USDA instead reported another decline in the proportion of crops in the good or excellent categories. The decline in crop conditions suggests a positive start to trading today."
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.6% at $5.38-1/2 a bushel, as of 0305 GMT, having dropped in the previous session to its lowest since July 13.
Wheat added 0.3% to $7.36 a bushel and soybeans rose 0.7% to $13.02-1/4 a bushel.
The USDA rated 60% of the U.S. corn crop in good-to-excellent condition in its weekly crop progress report on Monday, down 2 percentage points from the previous week, while analysts surveyed by Reuters on average had expected only a 1-point decline.
The agency rated 56% of soybeans as good-to-excellent, down from 57% the prior week and matching trade expectations for a 1-point drop.
The U.S. spring wheat harvest was 77% complete, the government said, up from 58% the previous week and well ahead of the five-year average of 55%. Analysts surveyed by Reuters on average had estimated harvest progress at 74%.
The U.S. winter wheat harvest is virtually over, last reported by the USDA as 95% complete by Aug. 8.
The USDA said on Monday that 657,854 tonnes of U.S. wheat were inspected for export last week, higher than expected. Corn and soybean inspections were in line with trade forecasts.
Commodity funds were net sellers of Chicago Board of Trade corn and soymeal futures contracts on Monday and net buyers of soybeans, soyoil and wheat, traders said. (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
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