Chicago corn futures edged up in Asian trading on Tuesday, hovering near their highest levels since end June hit in the previous session, following a reduced production outlook from the US Department of Agriculture (USDA).
The most-traded corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.1 percent at $6.96-1/2 a bushel. It hit its highest price since June 27 on Monday.
Soybeans rose 0.1 percent to $14.89-1/4 a bushel, also trading near the strongest since end June after the USDA made bigger-than-expected cuts to its domestic harvest estimate.
US corn and soybean supplies will fall to multi-year lows, as hot and dry weather during August in western growing areas cut into the harvest potential for both crops, the USDA said on Monday.
“The tight balance pattern of US soybeans in the international market in 2022/23 is expected to continue, and it is difficult to completely change in a short period of time,” analysts at Zhongzhou Futures in China said in a note.
