Corn futures increase for second day on expectations of lower US yields

SINGAPORE — Chicago corn futures rose for a second session on Monday on expectations of a marginally lower yield-forecast from the US Department of Agriculture (USDA), though ample world supply kept a lid on prices.

The Chicago Board of Trade most- active corn contract had risen 0.20% to $3.57-1/2 a bushel by 0315 GMT, having gained 0.40% in the previous session.

Wheat climbed 0.40% to $4.391/2 a bushel, after closing up 0.10% on Friday, while soybeans were up 0.40% at $9.66 a bushel, having ended Friday down 0.70%.

“The (corn) market is expecting the USDA to lower yields, which is providing some support,” said one India-based agricultural commodities analyst.

“But even with slightly lower yields, supply pressure is not going to ease. We have huge stocks.”

Corn prices have been facing pressure in recent weeks from expectations of a bumper US harvest, with the US government set to update its crop production forecast in a monthly report on Tuesday.

China’s corn output in 2017 will be higher than previously expected thanks to favorable weather as the grain matures, the China National Grain and Oils Information Center said on Friday.

According to its latest forecast, China will produce 212.50 million tons of corn, 3.20% lower than last year but one million higher than an August estimate of 211.50 million tons.

For soybeans, Chinese demand is likely to be the key driver after the US harvest finishes.

The USDA said on Friday morning that private exporters reported the sale of 264,000 tons of soybeans to China for delivery during the 2017/ 18 marketing year, the biggest flash sale in twoand-a-half weeks.

Weekly export sales of soybeans totaled 1.16 million tons, the USDA said, just above market forecasts that ranged from 500,000 to 1.10 million tons.

China, the world’s largest soybean buyer, imported 8.45 million tons of soybeans in August, a record for the month, customs figures showed on Friday.

Canada’s spring wheat harvest could be larger than expected, adding to ample global supplies of the grain, crop analysts said, but quality has been variable, keeping stocks of wheat for making bread in tight supply. —