Corn rises but set for weekly loss, soy also up

The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.6% at $3.99-1/2 a bushel at 0931 GMT but on course for a weekly loss of about 1.5%

Chicago corn futures rose on Friday but remained on track for a weekly loss, after larger estimates of U.S. and Brazilian crops showed the global market is well supplied.

Soybean futures were higher, extending this week’s advance, buoyed by a downgrade to the U.S. harvest outlook, while wheat also edged up.

The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.6% at $3.99-1/2 a bushel at 0931 GMT but on course for a weekly loss of about 1.5%.

Earlier this week, the U.S. Department of Agriculture (USDA) significantly raised its estimate for the U.S. corn crop, which will be harvested in the coming weeks.

“The prospect of a supply glut on the corn market is likely to weigh on corn prices in the coming weeks, especially as more supply is coming onto the market also from Brazil,” Commerzbank said in a note.

Brazil will harvest 137 million metric tons of corn in 2024-25, its crop agency Conab said, raising its estimate for second corn production by 5 million tons.

Low U.S. corn prices appear to be stimulating demand, preventing further losses.

Net export sales of new-crop U.S. corn of 2,047,813 tons in the week ended August 7 were near the high end of the range of trade estimates, with the USDA also confirming a series of private sales.

In other crops, CBOT most-active soybeans gained 0.3% to $10.32 a bushel and were up 4.5% so far this week, while wheat for September delivery rose a marginal 0.1% to $5.04 a bushel but was headed for a 2% weekly loss.

Net export sales of new-crop U.S. soybeans were larger than expected in the week ended August 7, but China’s absence from the U.S. market worried traders and kept a lid on prices. 

© ZAWYA