Corn ticks up from 5-week low; U.S. production outlook caps gains

The most-active corn contract the Chicago Board Of Trade rose 0.2% to $3.21-1/2 a bushel

  
Image used for illustrative purpose. An employee checks the quality of corn at a farmers' cooperative in Maennolsheim, near Strasbourg, France, September 28, 2018.

Image used for illustrative purpose. An employee checks the quality of corn at a farmers' cooperative in Maennolsheim, near Strasbourg, France, September 28, 2018.

REUTERS/Vincent Kessler

SINGAPORE  - Chicago corn futures rose on Monday as the market recovered from its lowest in five weeks on bargain buying and higher oil prices, although gains were curbed by expectations of a record U.S. crop.

Wheat slid for a third consecutive session as abundant world supplies weighed on the market.

A big prospective U.S. (corn) crop looks more and more likely to be realised while demand is shaky, said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

The most-active corn contract the Chicago Board Of Trade rose 0.2% to $3.21-1/2 a bushel, as of 0248 GMT, after ending down 0.9% in the previous session.

Wheat fell 0.1% to $4.95 a bushel, while soybeans gained 0.1% at $8.68 a bushel.

Oil prices climbed in early trade on Monday, clawing back over half of Friday's losses, on hopes for a stimulus deal to shore up the U.S. economic recovery and a pledge from Iraq to deepen its crude oil supply cuts.

Corn prices often track the move in energy markets, with the increasing use of the grain in making ethanol fuel.

The U.S. Department of Agriculture last week reported private sales of U.S. soybeans to China of 456,000 tonnes, the biggest single-day soy sale to the world's top buyer since June 11.

Record estimates for Canadian wheat crop, rising forecasts for Russia's harvest, improving conditions in Australia and good early signs for the U.S. spring wheat harvest are weighing on prices.

Large speculators increased their net short position in CBOT corn futures in the week to Aug. 4, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.

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

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