SINGAPORE/PARIS - Chicago corn futures lost more ground on Wednesday, with prices trading near a multi-month low reached in the previous session on worries around a global recession while wheat rebounded from the previous day's selloff. Soybeans edged higher.
Tentative calm returned to global markets on Wednesday, with the euro steadying after dropping to a two-decade low and oil back above $100 a barrel following a near 10% plunge a day earlier.
"In addition, there is the risk of a new wave of Covid spreading, prompting all players to reduce their exposure to market risks. The tightening of monetary policies is adding to the pressure on the markets, while global demand for cereals remains strong," Argus' agriculture consultancy Agritel said.
The most-active corn contract on the Chicago Board of Trade (CBOT) lost 0.2% to $5.77-1/4 a bushel as of 0252 GMT after falling as low as $5.71-3/4 a bushel in earlier overnight trade. Wheat was up 2.1% to $8.24-1/4 a bushel after loosing as much as 40 cents on Tuesday to close at $8.06 a bushel. Soybeans added 0.8% to 13.26-3/4 a bushel.
On the fundamentals front, the U.S. Department of Agriculture said weekly U.S. crop ratings declined more than analysts expected. The USDA, after the CBOT closed on Tuesday, rated 64% of the corn crop as good to excellent as of Sunday, down 3 percentage points from the previous week, while analysts surveyed by Reuters on average had expected a 2-point decline.
The agency rated 63% of the soybean crop as good to excellent, down from 65% a week earlier. Analysts on average had expected a 1-point decline. However, beneficial rains in portions of the U.S. Midwest over the Independence Day weekend bolstered crop prospects.
In Canada, farmers planted the most wheat this spring in nine years, as bottlenecks in global supplies drove up prices of grain and food, a government report showed on Tuesday.
Brazilian farmers have harvested nearly a third of their second corn in center south fields, as dry weather and the higher temperatures that prevailed last week continued to favor the work, especially in top grower Mato Grosso.
And in Ukraine the grain traders union UGA revised up on Wednesday its forecast for the country's grain and oilseed harvest to 69.4 million tonnes from the previous 66.5 million, but still far below the 2021 level of 106 million tonnes.
(Reporting by Naveen Thukral and Sybille de La Hamaide; Editing by Rashmi Aich and Uttaresh.V, Alexandra Hudson)