Corn, soybeans rebound after weather-inspired selloff

commodity-corn

U.S. corn and soybean futures on Thursday recovered from losses in the prior session following a selloff pinned on favourable weather that boosted hopes for a bountiful harvest in the fall.

FUNDAMENTALS

* Corn for December delivery on the Chicago Board of Trade gained 0.7 percent to $3.50-3/4 a bushel by 0132 GMT, after touching a contract low of 3.46 overnight.

* CBOT soybeans added 0.5 percent to $10.78-1/4 a bushel, having dropped to $10.40-1/2 on Wednesday, its weakest since May 25.

* The gains are likely to be fleeting, as analysts anticipate good crops in lieu of the weather.

* “The US near-term weather narrative remains decidedly bearish,” Commonwealth Bank of Australia said in a note.

* “Forecasters have flagged that the southwestern Corn Belt will likely turn drier again after this week, but on balance U.S. crops are in very good shape,” the bank said.

* The U.S. Department of Agriculture’s weekly conditions report on Tuesday showed strong ratings for corn, soybeans and wheat.

* CBOT wheat rose 0.5 percent to $4.30-1/2 a bushel.

* Black Sea wheat exporters Russia and Ukraine have started harvesting and are seeing higher yields and the same quality as a year ago, analysts and traders said.

[reuters]

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