Corn rises but bigger crops keep prices near contract lows
CANBERRA, Aug 15 (Reuters) - Chicago corn futures rose slightly on Friday, but were down 2% over the week and near contract lows after larger estimates of U.S. and Brazilian crops underscored that the global market is well supplied.
Soybean futures edged lower as profit-taking took the momentum out of a rally triggered by a downgrade to the U.S. harvest outlook.
Wheat also slipped after tracking corn lower during the week, as an upgrade to the harvest outlook in Western Australia bolstered expectations of ample supply.
The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $3.97-1/2 a bushel at 0621 GMT.
"There don't seem to be any significant supply issues in grains markets globally," said Commonwealth Bank analyst Dennis Voznesenski.
"Seasonal conditions look favourable. There's no reason to justify sustained price upside."
Brazil will harvest 137 million metric tons of corn in 2024-25, its crop agency Conab said, raising its estimate for second corn production by 5 million tons.
Conab's assessment came after the U.S. Department of Agriculture (USDA) significantly raised its estimate for the U.S. corn crop, which will be harvested in the coming months.
Low U.S. corn prices appear to be stimulating demand, preventing further losses.
Net export sales of new-crop U.S. corn of 2,047,813 tons in the week ended August 7 were near the high end of the range of trade estimates, with the USDA also confirming a series of private sales.
In other crops, CBOT most-active soybeans lost 0.1% to $10.27-1/2 a bushel but were up 4% so far this week, and wheat for September delivery fell 0.2% to $5.02-1/2 a bushel and was headed for a 2.3% weekly loss.
Net export sales of new-crop U.S. soybeans were larger than expected in the week ended August 7, but China's absence from the U.S. market worried traders and kept a lid on prices.
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