Corn rises for 4th day on forecast of tighter supplies, wheat downSINGAPORE - U.S. corn rose for a fourth consecutive session on Monday, trading near a one-year high with support from the U.S. agriculture department's bigger-than-expected reduction in stocks.
By: Naveen Thukral, Reuters
SINGAPORE - U.S. corn rose for a fourth consecutive session on Monday, trading near a one-year high with support from the U.S. agriculture department's bigger-than-expected reduction in stocks.
Wheat lost more ground, hovering close to a two-week low, with lack of demand for pricy U.S. shipments keeping the market under pressure.
"We saw a bullish USDA report which is supporting corn prices," said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.
"Stocks are expected to be lower and wet weather is hurting the crop."
Chicago Board Of Trade September corn rose 0.3 percent to $4.36 a bushel by 0249, having gained 1.4 percent in the previous session when prices hit a one-year high of $4.39-1/4 a bushel.
Wheat fell 0.4 percent to $5.74 a bushel, having closed down 0.3 percent on Friday, and soybeans added 0.1 percent to $10.32 a bushel.
Old-crop corn ending stocks were cut to 1.779 billion bushels from 1.876 billion due to increased demand from the export and feed sector. The average analyst forecast was 1.811 billion bushels.
The reductions, revealed in a monthly USDA report, added to concerns about supplies among traders worried that persistent rains will hurt yields for the autumn harvests.
The agency kept its U.S. corn and soy yield forecasts unchanged from June, surprising some analysts who had expected lower estimates due to the wet weather.
Many predicted the government would need to cut the estimates next month to reflect damage in the fields.
It pegged old-crop U.S. soybean ending stocks at 255 million bushels, down from 330 million bushels a month ago and less than the 287 million bushels expected by market watchers.
There is additional support for soybeans with rising demand in China, the world's largest buyer.
China imported 8.09 million tonnes of soybeans in June, up 32.0 percent from 6.13 million tonnes in May, figures from the General Administration of Customs of China showed.
The USDA raised its forecast of 2014/15 global wheat ending stocks by nearly 12 million tonnes, to 212.06 million tonnes, above the range of trade expectations.
Large speculators switched to a net long position in CBOT corn futures in the week to July 7, regulatory data released on Friday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.