Chicago Board of Trade (CBOT) corn futures ended higher on Thursday, rebounding from a drop to near two-week lows after the US Department ofAgriculture (USDA) raised its estimate of the US corn crop, Reuters reported, citing traders.
Wheat futures closed fractionally lower while soybeans turned up after USDA's soy figures contained no major bearish surprises.
Benchmark CBOT December corn settled up 1-1/4 cents at $4.06 per bushel, rallying after a dip to $3.97, the contract's lowest since Aug. 30. CBOT wheat ended down 3/4 cent at $5.78-1/2 a bushel while soybeans finished up 10-1/4 cents at $10.10-3/4 a bushel.
Corn futures firmed late in the session in what appeared to be technical moves, brokers said. Corn had sagged at midsession after the USDA in a monthly supply/demand report raised its estimate of the US 2024 corn yield to a record-high 183.6 bushels per acre (bpa), from 183.1 last month. Analysts surveyed by Reuters on average had expected a slight cut after a Midwest dry spell last month stressed crops.
The USDA forecast corn production at 15.186 billion bushels, the second-biggest harvest in history.
"The USDA bumping corn yield up a little bit wasn't really expected. It's going to catch some folks by surprise," said Angie Setzer, partner at Consus Ag Consulting.
However, she noted, traders were turning their attention to field reports as the harvest began in the heart of the Corn Belt. The USDA said the corn harvest was 5% complete bySunday.
For soybeans, the government left its US yield estimate unchanged from last month at 53.2 bpa, a record high that was in line with trade expectations.
Traders were monitoring the progress of Hurricane Francine, which barrelled across the US South on Thursday, pounding the region with heavy rains and gusty winds. Several Louisiana ports and sections of the Mississippi River remained closed, affecting energy, agricultural and metals exports.
CBOT wheat futures closed fractionally lower as pressure from ample global wheat supplies offset support from escalating tensions in the vital Black Sea export region.
Ukraine accused Russia of using strategic bombers to strike a civilian grain vessel in a missile attack in waters near NATO member Romania.
Meanwhile, Egypt's state grains buyer purchased 430,000 metric tons of Russian wheat in a private deal this week outside of the traditional tender process, sources told Reuters.
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