Corn, Soy, Wheat Set For Weekly Gains Ahead Of USDA Report
Chicago corn, wheat and soybean prices edged higher on Friday, keeping all three crops on course for their first weekly gain in four weeks, as traders squared positions before a US government report set to include revised area estimates.
Grain market participants were continuing to assess weather in the US Midwest, where corn and soybean crops have faced dry conditions in the past month in contrast to a rain-soaked spring that disrupted planting, as well as a deepening US-Chinese trade war that has curbed US soybean exports.
Supply And Demand Report
But the focus remained on Monday's US Department of Agriculture (USDA) monthly supply and demand report that is due to include highly anticipated revisions to rain-hit US corn and soybean planting.
"The market is likely to continue positioning ahead of that report and it seems loose shorts are jumping off for now," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
The most-active corn contract on the Chicago Board of Trade was up 0.1% at $4.18-3/4 a bushel by 1059 GMT.
The most active CBOT soybeans were up 0.6% at $8.88-1/2 while CBOT wheat added 0.3% to $5.00.
US-China Trade War
China bought small amounts of US soybeans, wheat, sorghum and pork last week, according to US government data issued on Thursday, in what may be the last such sales to China before this week's suspension by Beijing of purchases of US farm goods as tensions with Washington escalate.
However, a jump in prices for Brazilian soybeans is also putting off Chinese buyers, two traders said.
Brazilian prices have been boosted by expectations of fresh demand from China as it avoids US supplies.
Solid weekly US wheat exports lent some support to wheat futures on Thursday, encouraging investors to shrug off news that Saudi Arabia will relax its import rules on bug damage, opening the door to Black Sea origins including Russian wheat.
The possible arrival of Black Sea wheat in Saudi Arabia is likely to affect European Union exports in particular, traders said.
The news pushed Paris wheat futures to a near three-month low on Thursday before they turned higher with support from the firm trend in Chicago.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal, soyoil futures contracts on Thursday, traders said.