U.S. corn, soybeans rise on U.S. output worries
By Rajendra Jadhav and Sybille de La Hamaide
U.S. corn futures rose for a seventh straight session on Thursday to trade near a two-month high, supported by concerns that hot and dry weather in the Midwest during key crop development periods could reduce yields.
Soybeans also climbed on concerns over supplies from the United States, although an expected rise in Brazil's output capped the upside.
Wheat pared some of its gains in the previous sessions.
The Chicago Board of Trade's (CBOT) most-active corn contract was up 0.8% at $6.62-1/4 a bushel, as of 10:51 GMT, not far from Wednesday's peak of $6.71. Wheat edged down 0.7% to $8.07-3/4 a bushel and soybeans rose 0.3% to $14.52-1/4 a bushel.
Corn yield prospects in Western Iowa are lower than last year, scouts on an annual tour of top U.S. producing states found on Wednesday. Illinois' corn yield prospects and soybean pod counts are also lower than last year but above the three-year average. Indiana's corn yield prospects are lower than last year and below the three-year average, while corn yield prospects and soybean pod counts in Nebraska are also lower than last year and below their three-year averages.
"Lower yield reports from Iowa and Illinois are supporting corn and soybeans. But a few traders are booking profit as prices jumped too much in a short span," said a Mumbai-based dealer with a global trading firm.
Bumper U.S. crops are needed to offset low global grain supplies, but extreme heat and widespread drought in parts of the Midwest have hampered fields and a string of troubled crop harvests worldwide are pointing to multiple years of tight supplies and high food costs.
Brazil is set to plant its biggest soybean crop to date, as farmers in the world's largest supplier of the oilseed get ready to sow a larger area starting in September.
The market is closely monitoring a heatwave in China, which could be forced to ramp up imports of corn, soybean and rice in coming months if dryness continues for a few weeks, the dealer said.
Egypt, one of the world's largest wheat importers, is believed to have made no purchase of imported wheat in talks with trading houses on Wednesday, traders said.
The General Authority for Supply Commodities (GASC) considered prices offered as too high, they said.
CBOT wheat 807,75 -5,50 -0,68
CBOT corn 662,25 5,00 0,76
CBOT soy 1452,25 -4,75 -0,33
Paris wheat 321,25 -0,75 -0,23
Paris maize 320,00 -1,00 -0,31
Paris rapeseed 624,75 -8,50 -1,34
WTI crude oil 94,73 -0,16 -0,17
Euro/dlr 0,9976 0,00 0,11
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne,
(Reporting by Rajendra Jadhav Editing by Anil D'Silva and Mark Potter)
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