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GRAINS-Corn recovers from 5-week low; bumper crop…

By Naveen Thukral

SINGAPORE, Aug 5 – Chicago corn and soybean futures ticked higher on Wednesday as both the contracts recovered from sharp declines in the previous session, although expectations of bumper U.S. production curbed gains.

Wheat rose for the first time in three sessions.

“The market is running out of time for any weather event to curb the huge prospective U.S. crop,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

“”The other issue is that more U.S. lockdowns are likely to curb gasoline/ethanol use, and so (result in lower) corn consumption.”

The most-active corn contract on the Chicago Board Of Trade (CBOT) rose 0.6% to $3.22-1/4 a bushel, as of 0132 GMT, recovering from its lowest since June 29 at $3.20 a bushel touched on Tuesday.

Soybeans added 0.2% to $8.83-3/4 a bushel, after dropping to its lowest since July 15 at $8.79 a bushel in the previous session and wheat firmed 0.1% to $5.08-3/4 a bushel.

Commodity brokerage StoneX, formerly known as INTL FCStone, on Monday projected U.S. 2020 corn production at 15.320 billion bushels, with an average yield of 182.4 bushels per acre (bpa).

Brokerage forecast this year’s U.S. soybean harvest at 4.496 billion bushels, with an average yield of 54.2 bpa.

The U.S. Agriculture Department’s weekly crop conditions report on Monday afternoon rated 72% of the U.S. corn crop and 73% of the soybean crop as ‘good-to-excellent’, bolstering expectations for massive production.

Brazilian soybean production will hit a record 132.6 million tonnes next season, as demand from China remains strong and farmers intend to expand acreage, according to a forecast from agribusiness consultancy StoneX on Tuesday.

Egypt’s General Authority for Supply Commodities (GASC) set a tender on Tuesday to buy an unspecified amount of wheat from global suppliers for shipment from Sept. 11-20 and/or Sept. 21-30.

Ukrainian grain traders union UGA on Tuesday increased Ukraine’s 2020 corn harvest forecast to 38.9 million tonnes from 36.8 million tonnes.

Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Rashmi Aich)

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