SINGAPORE- Chicago corn futures firmed on Monday, although an upgrade to European production forecasts and supplies from the US harvest kept prices near their lowest since late 2020.
Wheat fell, although expectations of lower output in Australia and Argentina limited losses.
“Corn prices are facing supply pressure,” said one Singapore-based trader at an international trading company. “There is plenty of Brazilian corn in the market and we have big crops coming from Europe and the U.S.”
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1 percent at $4.76-1/2 a bushel. Still, the market is trading close to its lowest levels since Dec. 2020.
Soybeans fell 0.3 percent to $13.36-1/4 a bushel and wheat lost 0.6 percent at $6.00-1/2 a bushel.
Summer rain has benefited maize (corn) crops in much of the European Union, with Consultancy Strategie Grains raising its forecast for the EU’s 2023 maize crop by nearly 1 million metric tons to 59.6 million.
In France, an estimated 82 percent of maize crops were in “good or excellent” condition by Sept. 11, up from 80 percent the previous week, farm office FranceAgriMer said.
Meanwhile, the US government last week raised its corn crop estimate. With huge shipments from Brazil reducing overseas demand for US corn, analysts believe US stocks could next year be near their highest in a decade.
Helping depress prices, large speculators had by Sept. 12 built their biggest net short position in CBOT corn since August 2020, regulatory data showed, with traders saying they saw further selling on Friday.
Chicago corn has fallen 30 percent this year. – Reuters
