U.S. corn drops on profit-taking; wheat, soybeans edge higher

Article content

Chicago corn futures dipped in Asian trading on Wednesday, as traders chose to pocket profits from recent gains spurred by expectations of tight U.S. supplies, while risks of a global economic slowdown also weighed on sentiment.

Wheat rose slightly in range-bound trade amid concerns over Black Sea supplies in the wake of Russia’s criticism of a diplomatic deal allowing grain shipments from Ukraine. Soybeans were also slightly firmer.

Article content

FUNDAMENTALS

* The most-traded corn contract on the Chicago Board of Trade (CBOT) was down 0.3% at $6.91 a bushel, as of 0245 GMT, extending losses after hitting its strongest level since June 27 on Monday.

Article content

* Wheat climbed 0.4% to $8.63-1/2 a bushel, while soybeans added 0.4% to $14.85-1/4 a bushel.

* Argentine soybean farmers have sold around 57% of the 2021/22 crop, the agriculture ministry said on Tuesday citing data through last week, reflecting a boost after the government offered them a preferential foreign exchange rate.

* Some U.S. railroads will start halting crop shipments on Thursday, a day ahead of a potential work stoppage, an agricultural association and sources at two grain cooperatives said on Tuesday, threatening exports and feed deliveries for livestock.

* The United Nations is trying to broker a resumption of Russian ammonia exports through Ukraine, a Western diplomat said on Tuesday, a move that could stabilize a landmark deal allowing Ukrainian food and fertilizer shipments from Black Sea ports.

* France, the European Union’s biggest grain grower, on Tuesday reduced its forecast for this year’s drought-hit maize crop by 1 million tonnes to the lowest level since 1990.

MARKET NEWS

* Asian shares tumbled, the dollar held firm and the U.S. yield curve was deeply inverted, as a white-hot U.S. inflation report dashed hopes for a peak in inflation and fueled bets that interest rates may have to be raised higher and for longer.

DATA/EVENTS (GMT)

0600 UK CPI YY Aug

1230 US PPI Machine Manufacturing Aug

(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)