|19 November, 2019

Corn rebounds from 2-month low as U.S. harvest pace lags

The most-active corn contract on the Chicago Board Of Trade was up 0.2% at $3.68-1/2 a bushel

Sweetcorn is displayed inside at RHS (Royal Horticultural Show) London Harvest Festival Show on October 7, 2014 in London, England.

Sweetcorn is displayed inside at RHS (Royal Horticultural Show) London Harvest Festival Show on October 7, 2014 in London, England.

Gettyimages

SINGAPORE  - Chicago corn futures ticked higher on Tuesday with the market rising from a two-month low touched in the previous session, while soybeans recovered from their lowest in nearly seven weeks as a slow pace of U.S. harvest underpinned prices.

Gains in both markets were limited by renewed doubts over a U.S.-China trade deal.

The most-active corn contract on the Chicago Board Of Trade (CBOT)  was up 0.2% at $3.68-1/2 a bushel, as of 0259 GMT, after dropping to its lowest since Sept. 18 at $3.67-1/2 a bushel on Monday.

Soybeans Sv1 were up 0.2% at $9.12-1/4 a bushel. In the previous session, soybean futures dropped to an Oct. 4 low of $9.10 a bushel.

The U.S. Department of Agriculture (USDA) said the U.S. corn harvest was 76% complete, while the soybean harvest was pegged at 91%. The five-year average pace of corn harvest stands at 92% and soybeans at 95%.  

Doubts over a U.S.-China trade deal kept a lid on prices.

A CNBC report cited that the mood in Beijing was pessimistic about a trade deal due to U.S. President Donald Trump's reluctance to roll back tariffs, dampening sentiment among global investors.  

"Most participants have given up watching that deal as it is on and then off again," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

"Prices will be range-bound until we can find some real new news."

Chinese state media had said Washington and Beijing held "constructive talks" on trade in a high-level phone call on Saturday that included Vice Premier Liu He, U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

CBOT wheat Wv1 was down 0.1% at $5.06-3/4 a bushel, having closed up 0.9% on Monday.

Strategie Grains has lowered its estimate of the soft wheat area for next year's harvest in the European Union after heavy rain disrupted field work in western EU countries.  

In a monthly report, the French analyst firm pegged the EU's soft wheat area for 2020 at 23.7 million hectares, down about 200,000 hectares from its initial outlook in October and now below an estimated 23.8 million hectares harvested this year.

Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Monday, and net buyers of wheat and soyoil futures, traders said.  

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips) ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

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