Corn steadies after fund sell-off
Wheat and soybean futures rose slightly, having been dragged down by corn in recent days.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.97-1/2 a bushel at 0212 GMT, with CBOT wheat climbing 0.1% to $5.94 a bushel and soybeans up 0.3% at $10.50-3/4 bushel.
* Corn has slipped more than 3% from a peak of $5.14 on Friday, its highest since August 2023.
* Prices are still up around 8.5% this year as strong U.S. exports and drought in Argentina tighten the supply outlook.
* However, heavy rainfall across much of Argentina's agricultural heartland is likely to continue over the next few days and mark an "inflection point" for corn and soybean crops, the Rosario grains exchange said on Monday.
* Rapid planting of Brazil's safrinha corn crop in recent weeks has eased fears that late sowing would reduce yields, StoneX analyst Arlan Suderman wrote in a note.
* The U.S. Department of Agriculture is expected to project an increase in the amount of U.S. farmland planted with corn this year at its annual Agricultural Outlook Forum on Thursday.
* Commodity funds hold a massive net long position in CBOT corn futures, leaving the market prone to bouts of long liquidation that drives down prices. Funds were net sellers of corn on Friday and Monday, traders said.
* In wheat, Russian export prices continued their upward trend last week due to a stronger rouble and lower shipments.
* Russia's state weather forecaster meanwhile said late winter frosts in Russia's southern breadbasket regions were unlikely to inflict significant damage on winter crops.
* In soybeans, consultants AgRural trimmed their forecast for Brazil's crop to 168.2 million metric tons from 171 million tons, but that still represents a record-breaking harvest.
MARKETS NEWS
* Asian shares slid on Tuesday amid worries about U.S. investment curbs on China, while a run-up in the euro faded as investors wait for Germany to sort out the formation of its new government with no major surprises.
(Reporting by Peter Hobson; Editing by Rashmi Aich)
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