Corn and soybeans inch higher as traders eye U.S. crop conditions
CANBERRA, July 3 (Reuters) -Chicago corn and soybean futures edged up on Wednesday and were hovering above multi-year lows as concerns over the condition of U.S. crops were offset by ample supply.
Wheat futures also rose slightly but were under pressure from a rapidly advancing U.S. harvest.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.1% at $4.21-1/2 a bushel by 0052 GMT after falling to $3.99-1/2 on Friday, its lowest since 2020.
* CBOT soybeans Sv1 rose 0.1% to $11.14-1/4 a bushel having slumped to $10.97, also its lowest since 2020, on Monday.
* Wheat Wv1 was up 0.3% at $5.82-1/2 a bushel after falling to a two-month low of $5.57 in June.
* U.S. government data on Monday showed the condition of the U.S. corn crop had deteriorated and soybean ratings had held steady after floods swamped portions of the northwestern Midwest.
* Some meteorological models predict the western Corn Belt could face dry weather and high heat in late July or early August, which could impact soybean pod setting.
* Half of U.S. Crop Watch producers have ongoing crop concerns, particularly with corn.
* The U.S. Department of Agriculture (USDA) also reported on Friday that U.S. farmers planted more corn than it forecast in March, hitting corn prices.
* U.S. farmers are holding onto corn and soybeans waiting for better prices, which could hamper any price recovery.
* Brazilian second-corn farmers are expected to reap 100.5 million metric tons in the 2023/24 cycle, 10% less than last season but more than initially thought, consultants Agroconsult said.
* China's COFCO International projects a potential increase of Brazilian soybean and corn harvests in the 2024/25 cycle, it said.
* China is likely to import record volumes of soybeans in July, drawn by lower prices and the prospect of Donald Trump returning as president.
* In wheat, harvesting of the U.S. winter crop continued to progress ahead of the average pace and condition ratings improved for spring wheat in the northern Plains, the USDA said.
* Russian wheat export prices declined for a fourth week in a row last week but uncertainty remains about the final size of the harvest in the world's largest wheat exporter.
* Commodity funds were net buyers of CBOT corn, soybeans, soymeal and soyoil futures and net sellers of wheat on Tuesday, traders said.
MARKETS NEWS
* Global stocks edged higher while U.S. Treasury yields dipped on Tuesday, as markets weighed data showing a persistently tight labour market and prospects of interest rate cuts after comments from Federal Reserve Chair Jerome Powell. MKTS/GLOB
Reporting by Peter Hobson; Editing by Rashmi Aich
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