Corn Extends Rebound, Wheat Stuck at Two-Week Low

By Gus Trompiz and Peter Hobson

PARIS/CANBERRA, July 16 (Reuters) – Chicago corn futures rose for a third day on Wednesday to extend a recovery from contract lows, with favorable U.S. crop conditions seen as priced in, analysts said.

Soybeans also gained ground to move away from a three-month low struck earlier this week, but Chicago wheat inched down to hold around a two-week low from Tuesday.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 1.3% at $4.25¼ a bushel by 1232 GMT. New-crop December futures hit a contract low of $4.07½ on Monday.

“Following a new low reached on Monday, a wave of short-covering by funds provided support to corn,” Argus analysts said in a note. “Additionally, although its crop rating remains very strong, it did not improve as of Monday evening.”

The U.S. Department of Agriculture (USDA) said on Monday that 74% of the U.S. corn crop was in good-or-excellent condition — the highest score for the time of year since 2016 but unchanged from the previous week.

CBOT soybeans were up 1.0% at $10.11¾ a bushel after touching $9.98¼ on Monday, their lowest since April 9.

U.S. soybean crop conditions, which improved last week to also reach their highest since 2016, have weighed on prices.

The oilseed market found some support in monthly U.S. soybean crushing volumes, which topped an average of trade expectations and reached the highest-ever level for June, according to National Oilseed Processors Association data released on Tuesday.

CBOT wheat was 0.3% down at $5.36¼ a bushel.

Consultancy Sovecon said on Wednesday that it had raised its Russian wheat crop forecast to 83.6 million tons from 83.0 million previously.

The wheat market had found some support in the past week from delays to harvesting and export loadings in Russia, though analysts expect supplies to build in the rest of July as harvesting accelerates.

News that major importer Algeria had booked around 1 million tons of wheat in a tender on Tuesday, according to trader estimates, also lent some support to wheat.

However, favorable supply prospects remained a curb on grain prices.

Uncertainty over the effects of U.S. President Donald Trump’s sweeping tariffs for both agricultural trade and the wider economy also hung over grain markets.