CANBERRA/PARIS, Dec 10 (Reuters): Chicago corn futures held near their highest levels since June on Tuesday as the market awaited estimates from the US Department of Agriculture (USDA) later in the day that are expected to show a decline in US stockpiles.
Soybean futures rose slightly, but were pressured by expectations of large South American production. Wheat dropped as traders assessed the size of Russia's crop.
The most active corn contract on the Chicago Board of Trade (CBOT) was down 0.1% to $4.41-1/4 a bushel at 1140 GMT after climbing to $4.42 on Monday, the highest since June 26. CBOT soybeans added 0.25% to $9.92-1/2 a bushel, while wheat fell 0.4% to $5.56-1/2 a bushel.
All three contracts hit four-year lows earlier this year on plentiful supply and have struggled to recover ground.
Solid exports of corn from the United States are supporting prices, with the USDA reporting export inspections in the latest week at 1,049,690 metric tons, the high end of trade expectations.
"The strong demand for US corn could cause the corn price on the CBOT to rise further, provided that demand will not be lost to other suppliers such as Brazil, Argentina or Ukraine," Commerzbank said in a note.
Importers in Spain are buying US corn at a pace not seen in at least six years due to high South American prices and crop quality concerns in Ukraine, traders and analysts said.
However, Citi analysts said CBOT corn should average $3.90 in the first quarter of 2025 as factors, including weak Chinese demand, weigh crop prices.
In wheat, crops in top exporter Russia may be in better condition than leaked data suggested last week, Russian agriculture analysts said. Data from the state weather forecasting agency had indicated an unprecedented 37% of Russia's winter crop was in poor condition or had not sprouted due to low moisture levels.
"It's a bit early to assume a poor production year," said Commonwealth Bank analyst Dennis Voznesenski. "Everything is in dormancy until March. If they get decent snow cover and soil moisture, it could still be a good crop," he said, adding that ongoing harvests in Argentina and Australia were better than expected, boosting global supply.
