Monday, October 3

Corn resumes rally as US crop tour results awaited


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PARIS/SINGAPORE — Chicago corn futures rose on Friday,

resuming a rally after a technical setback in the previous session, as the

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market awaited final results from a major US Midwest field tour to gauge the

impact on crops of hot, dry weather.

Soybeans were firm as investors also weighed mixed indications on Midwest

growing conditions.

Wheat edged higher, with an easing in the dollar lending some support.

The most-active corn contract on the Chicago Board of Trade (CBOT) was

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up 0.9% at $6.56 a bushel by 1128 GMT.

It remained below a near two-month high struck on Wednesday but was on

course for a 5% weekly gain.

The corn market has been supported by some disappointing yield readings in

the annual Pro Farmer Midwest Crop Tour this week, raising concern about worse

damage than anticipated during a hot, dry summer.

“The crop monitoring tour … does not lead us to expect much in the way of

good news for this year’s US crop,” Commerzbank analysts said of corn.

“The risk of tightening supply should lend support to US prices.”

The market is watching for an end-of-tour corn yield projection due to be

published on Friday.

Iowa’s corn yield prospects are on par with the three-year average, while

soybean pod counts are above the three-year average, tour scouts found on

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Thursday.

CBOT soybeans were up 0.8% at $14.43 a bushel, wile CBOT wheat

edged down 0.7% to $7.94-3/4 a bushel.

Drought and a record heatwave in China have also lent support to grain and

oilseed prices this week, raising expectations of increased Chinese import

demand.

India’s government on Thursday approved a policy to restrict wheat flour

exports to calm local prices.

However, wheat markets were being curbed by signs of renewed competition

from the Black Sea region.

Loading of Ukrainian grain is continuing under a wartime agreement, while

Egypt, one of the world’s largest wheat importers, booked 240,000 tonnes of

Russian wheat this week.

Prices at 1128 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 794.75 5.75 0.73 770.75 3.11

CBOT corn 656.00 6.00 0.92 593.25 10.58

CBOT soy 1443.00 11.75 0.82 1339.25 7.75

Paris wheat 327.00 0.00 0.00 276.75 18.16

Paris maize 314.75 1.50 0.48 226.00 39.27

Paris rape 626.75 3.00 0.48 754.00 -16.88

WTI crude oil 93.82 1.30 1.41 75.21 24.74

Euro/dlr 1.00 0.00 0.30 1.1368 -12.00

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Sherry Jacob-Phillips, Subhranshu Sahu and David Evans)



financialpost.com