CBOT corn futures rally on sharply lowered supplies

June WASDE Pre-report guesstimates

June WASDE Pre-report guesstimates

USA wheat futures fell more than 2.5% on Wednesday as fears eased about the potential for widespread crop damage after recent heavy rains, pushing prices to a near one-week low.

The most active corn contract for July delivery closed 12 cents higher, or 2.89 percent at 4.2775 USA dollars per bushel.

The sharply lowered estimates triggered a double-digit rally in CBOT corn futures, said market watchers. In the crop progress reports, corn planting is expected at 80 to 85 percent complete versus 67 percent last week and 100 percent a year ago. The state's five-year average is 89% for soybean planting. CBOT wheat eased 0.3% to $5.05-3/4 a bushel, and soybeans fell 0.6% to $8.53-1/2 a bushel.

"U.S. farmers might just be able to finish planting if the weather holds up", said one Singapore-based feed grains trader.

The report lists 42 percent of Indiana's soybean crop as planted, up from 17 percent a week before.

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Traders were adjusting positions and stepping to the sidelines before the USDA issues a monthly supply and demand report at 11 a.m. CDT (1600 GMT).

"Soybean imports were lower as the higher tariffs on USA shipments continued to weigh. Shipments from Brazil also dropped a lot", said Xie Huilan, an analyst with Cofeed, an agribusiness research firm.

Soybeans, which are usually planted later than corn, were 60% planted, slightly ahead of market forecasts.

Chicago Board of Trade (CBOT) wheat and soybeans futures closed higher on Monday, as traders had their eyes on two updated reports respectively on the latest export inspection and crop progress.

The market continued to keep a close watch on the crop outlook in Russian Federation amid concerns about dry weather. Germany is traditionally the main supplier.

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