SINGAPORE- Chicago corn edged lower on Wednesday amid a broad decline in world markets, although the grain was poised for its biggest monthly climb in six months as declining US and European crop prospects supported prices.
Wheat and soybeans slid on expectations of higher global supplies.
“The market is in the process of pricing a potential poor yield for the season,” according to a Hightower report, referring to corn.
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.1 percent at $6.76-1/2 a bushel. The market is up more than 9 percent in August, its biggest monthly gain since February.
Wheat has added 1.2 percent in August, rising for the first time in three months, while soybeans have given up around 3 percent this month, after closing marginally higher in July.
World stocks tumbled for a third straight session on Tuesday, as investors worried about continued US and European interest rate hikes, after data pointed to persistent inflation in both regions despite central banks’ policy tightening so far.
The agricultural markets are monitoring supply prospects as US corn and soybeans approach maturity ahead of the fall harvest. The US Department of Agriculture (USDA) late Monday rated 54 percent of the US corn crop in good-to-excellent condition, down from 55 percent a week earlier.
That came after advisory service Pro Farmer estimated the US corn yield at 168.1 bushels per acre on Friday, well below the USDA’s forecast of 175.4. The Pro Farmer harvest projection followed a four-day Midwest crop tour that showed the effects of hot, dry weather in some areas. – Reuters
