Corn drops; wheat eases

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    SINGAPORE- Chicago corn futures slid for a third consecutive session on Tuesday with prices under pressure from US harvest progress, although losses were limited by concerns over lower yields.

    Wheat lost ground after climbing to its highest since late June in the last session on worries about lower production in Australia and Argentina.

    The Chicago Board of Trade most-active corn contract lost 0.4 percent at $3.85-3/4 a bushel. Wheat gave up 0.9 percent at $5.19 a bushel and soybeans lost 0.2 percent at $9.31-3/4 a bushel.

    The US Department of Agriculture (USDA) said 30 percent of the corn crop has been harvested, compared with 22 percent a week ago, but below the average pace of 47 percent.

    US soybean harvest stood at 46 percent, up from 26 percent a week ago, but lower than the average pace of 64 percent, the agency said after the market closed on Monday.
    Lower yields for both corn and soybeans are supporting prices.

    Six more US Crop Watch corn and soybean fields were harvested in the latest week, the busiest one yet for the participating growers, and the results reduced the overall yield scores for both crops, Karen Braun, a market analyst for Reuters, wrote in a column.

    “Particularly for corn, it appears that largely favorable weather during the growing season could not outweigh some of the earlier problems with moisture during and just after planting,” Braun wrote.

    Snowfall and freezing temperatures in northern US states have raised additional risks.

    The USDA has said it will collect extra data on corn and soybean acreage in Minnesota and North Dakota following the recent snow.

    “The harvest is progressing now, which is good but not great if you look at the historic pace,” said one Singapore-based trader. “We will have an idea about the size of the crop in a few weeks time.”

    Brisk weekly US export sales reported on Friday are supporting the soybean market. – Reuters