Corn, Soybeans Steady Near Multi-Month Highs

Chicago corn and soybean futures edged higher on Wednesday to trade near multi-month highs as investors monitored rain forecasts in Argentina and awaited U.S. inflation data for more clues on interest rate policy.

Wheat prices eased after a two-day rally, capped by a backdrop of strong competition for tepid export demand.

The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.4% at $4.76-1/2 a bushel at 1146 GMT. The contract reached its highest since December 2023 on Tuesday before turning lower.

CBOT soybeans rose 0.3% to $10.50-1/2 a bushel. The oilseed hit its highest since early October on Tuesday before easing like corn.

CBOT wheat dipped 0.3% to $5.44-3/4 a bushel after touching its highest in over a week on Tuesday.

Corn and soybean prices surged after the U.S. Department of Agriculture, on Friday, cut its estimates for U.S. 2024 production and end-of-season stocks by more than analysts had expected.

The surprise revisions added impetus from harsh weather for corn and soy crops in Argentina.

After farmer selling curbed the price rallies in Chicago, the markets were waiting for fresh direction.

“Traders are now eagerly waiting to see if the beneficial rains will fall as expected next weekend in central Argentina, which has been plagued by a violent heatwave,” Argus analysts said.

However, the start of what is widely forecast to be a record harvest in Brazil was keeping a lid on soy prices.

“Corn and soy are different in terms of where global ending stocks are going to be,” said Commonwealth Bank analyst Dennis Voznesenski.

“Soybean ending stocks just keep going up. Regardless of USDA revisions, they will be the highest ever. But ending stocks for corn will be the lowest since 2020.”

Grain markets also lacked impetus from broader markets as investors watched for U.S. consumer price data later on Wednesday.

Tags: export, prices, soybeans, wheat, futures, demand, corn