Corn prices ease from 1-week top, wheat up for 3rd session

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SINGAPORE — Chicago corn futures eased on Wednesday, as the market took a breather after climbing to a one-week high in the previous session on concerns over hot and dry weather in parts of the US Midwest.

Wheat rose for a third consecutive session, although hopes of more grain exports from Ukraine limited gains.

“..traders are nervous with the few dry spots in the Western Corn Belt and a significant drop in corn and wheat conditions this past week,” according to a Hightower report.

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“Positioning ahead of the USDA (US Department of Agriculture) report might have added to the positive tone as there is little room for a smaller yield which could tighten the ending stocks situation.”

The most-active corn contract on the Chicago Board of Trade (CBOT) rose quarter of a cent to $6.14-1/4 a bushel, as of 0028 GMT, and soybeans slid 0.1% to $14.27-1/2 a bushel.

Wheat added 0.5% to $7.85-3/4 a bushel.

US weather and crop conditions are a primary concern for the market after the USDA lowered its weekly soybean condition rating and cut its corn rating by more than expected.

The agency said 58% of US corn was in good-to-excellent condition, as of Sunday, down 3 points from a week earlier and below the average trade estimate of 60%. Soybeans were rated 59% good-to-excellent, in line with estimates, but down a point from a week earlier.

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Parts of the Midwest received rain recently, but hot weather forecast for the region this week is expected to continue stressing crops.

The market is awaiting the USDA’s monthly supply and demand forecasts due on Friday.

Progress in releasing vessels stuck at Ukrainian ports, as well as expectations of a record Russian harvest, continued to curb gains in wheat prices.

Two more grain ships left Ukraine’s Black Sea ports on Tuesday, bringing the total to depart from the war-torn country under a safe passage deal to 12.

Commodity funds were net buyers of CBOT corn, wheat, soybean and soymeal futures contracts on Tuesday and net even in soyoil, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Uttaresh.V)