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Corn edges higher; brighter weather, trade war limit upside

U.S. corn futures edged higher on Wednesday, though concerns forecasts for crop-friendly weather and fears of a protracted U.S.-China trade war limited gains.

Soybeans firmed, despite fears of prolonged weak Chinese demand for U.S. supplies, while wheat also shrugged off ample global supplies to edge higher.

The most active corn futures on the Chicago Board Of Trade were up 0.2% at $4.13-1/2 a bushel, having closed down 0.5% in the previous session.

Analysts said the weather outlook was weighing on market sentiment.

“Some U.S. corn regions are returning to a drier weather pattern over the next week or so,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The weather will allow fields to dry after recent heavy rains, analysts said, before expected rains arrive afterwards.

More rain is expected in the 11- to 15-day forecast, with near-normal temperatures over the next two weeks, Commodity Weather Group said on Tuesday.

Fears over the outlook for global economy also dragged despite the efforts of U.S. President Donald Trump to soothe market nerves.

Trump dismissed concerns over a protracted trade war with China, despite a warning by Beijing of financial market chaos.

The U.S. Department of Agriculture pegged 57% of U.S. corn crop in good-to-excellent condition, down 1 percentage point from a week earlier.

The most active soybean futures were up 0.2% at $8.67-1/2 a bushel, having closed down 0.3% on Tuesday.

The USDA left its soybean conditions unchanged at 54%.

The most active wheat futures were up 0.3% at $4.85-1/2 a bushel, having closed down 2% on Tuesday.

Abundant global supplies of wheat remained an obstacle for U.S. export sales prospects. A firmer dollar can make U.S. wheat even less attractive to buyers holding other currencies.

Grains prices at 0343 GMT

 Contract      Last  Change   Pct chg  Two-day chg    MA 30   RSI 
 CBOT wheat  485.50    1.50    +0.31%       -1.82%   504.35     41
 CBOT corn   413.50    1.00    +0.24%       -0.30%   430.98     41
 CBOT soy    867.50    1.75    +0.20%       -0.14%   900.21     27
 CBOT rice    11.34   $0.00    +0.00%       -3.12%   $11.77     25
 WTI crude    53.56  -$0.07    -0.13%       -2.07%   $57.16     35
 Euro/dlr    $1.121  $0.001    +0.10%       +0.06%                
 USD/AUD     0.6699  -0.006    -0.90%       -0.84%

Most active contracts
Wheat, corn and soy US cents/bushel. Rice:USD per hundredweight RSI 14, exponential
Source: Reuters (Reporting by Colin Packham; editing by Gopakumar Warrier)

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