SINGAPORE, May 16: US corn futures edged down on Monday, with the market giving up some of last session’s gains due to easing concerns over adverse crop weather in Brazil and the United States. Soybeans gained ground, snapping a three-session losing streak as strong demand from top importer China underpinned the market. The Chicago Board of Trade most-active corn contract fell 0.1 percent to $3.90-1/4 a bushel by 0214 GMT, having gained 0.5 percent in the previous session. Wheat rose 0.1 percent to $4.75 a bushel and soybeans added 0.5 percent to $10.70 a bushel. “U.S. and South American weather looks largely helpful for corn so the worry level has receded,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “The trade will remain worried though about the prospective La Nina summer in the U.S. this year so the market is supported from this end.” Lack of rains have hit Brazil’s corn production, while wet weather forced U.S. farmers earlier this month to delay planting that has otherwise been running ahead of average pace. The soybean market came under pressure in the past few sessions as expectations that farmers are switching planting intentions to the oilseed and away from corn weighed on prices. There are expectations the USDA’s June 30 acreage report could show a shift of 1-2 million acres from corn into soybeans, compared with the government’s March 31 planting intentions report. Wheat drew support as wet conditions in the southern plains hard red winter wheat belt have raised concerns about grain quality as the crop matures, but yield prospects are still strong. Large speculators cut their net long position in Chicago Board of Trade corn futures in the week to May. 10, regulatory data released on Friday showed. The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans. In other news, monsoon rains are expected to arrive on India’s southern Kerala coast by June 7, about a week later than usual, the country’s weather office said on Sunday.
(AGENCIES)
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