Corn supported by U.S. rains; wheat awaits crop-damage estimates

Corn

Chicago corn futures were unchanged on Thursday, holding on to last session’s gains as recent wet weather across key growing regions raised fears that some farmers may need to re-plant recently seeded crops.

Wheat edged lower, awaiting estimates of damage caused by snow storms over the weekend in key U.S. growing areas.

The Chicago Board Of Trade most-active corn contract was flat at $3.74-3/4 a bushel by 0226 GMT, having gained 0.7 percent on Wednesday. Soybeans were also unchanged at $9.75-1/4, having firmed 0.7 percent in the past session.

Wheat dipped 0.1 percent to $4.53-3/4 a bushel, after closing little changed on Wednesday.

“Concern about flooding and planting delays in the Midwest will continue to dominate the news flow for at least the next couple of weeks,” said Madeleine Donlan, an analyst at Commonwealth Bank of Australia.

“U.S. croppers had made good planting progress but there is now a big question mark over how much has been washed away by weekend storms and how quickly farmers can get back in their fields.”

Corn is being underpinned by concerns heavy rains in the Midwest and southern growing areas may have washed away recently sown crops. Wheat is supported by concerns about damage caused by recent cold weather across key U.S. states for the crop.

Still, Informa Economics, a private analytics firm, projected 2017 U.S. winter wheat production at 1.326 billion bushels, up 41 million bushels from their forecast in April for 1.285 billion bushels, three trade sources said on Wednesday.

Yield prospects for hard red winter wheat in western Kansas were uncertain after a major weekend storm buried some fields under heavy snow, scouts on an annual crop tour said.

The European Commission trimmed its forecast for usable production of common wheat in the EU in the upcoming 2017/18 season to 141.9 million tonnes from 142.2 million a month ago.

The reduced forecast was still well above last year’s estimated output of 134.4 million tonnes.

Commodity funds were net buyers of CBOT corn, wheat and soybeans on Wednesday, traders said. They were also net buyers of soymeal and soyoil.

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